Let's just assume calculation on annual payments of interest rather than semi-annual, to simplify. Set them up the way you see in the guidelines- then solve!

You are given the following data: A bond has a coupon rate of 7.225, the latest yield reported of 6.23 and 8 years to maturity. What is the price of the bond? Let'sdoanotherforgoodmeasure.Abondhasacouponrateof6.95,thelatestyieldreportedof8.7and16yearstomaturity.Whatisthepriceofthisbond?

Now let's solve 2 for Yield to Maturity, as in the example for #4 from your Chapter 6 Valuing Bonds Guide. NOTE: You MUST carry these rates out to 4 decimal places for precision!!!

The years to maturity on Bond Beta are 12, the coupon rate is 4.5%, and the bond current sells for $1,032.04. What is the current YTM?Bond Gamma will mature 18 years from now, pays a coupon rate of 8.25%, and currently is on the market for $998.14. What is the current YTM?

Finally, let's solve for the coupon rate, using the example setup for #5 for PMT from your Chapter 6 Valuing Bonds Guide spreadsheet. Remember to use your dollar results to interpret the percentage (to 4 decimal places - as your example shows!

• A bond issued by Beverly Hillbilly Company currently sells for $1,040, has 15 years to maturity, and shows a current YTM of 5.76%. What is the coupon rate on the bond?

• A bond for Gilligan's Famous Island Adventure, Inc., has a current market price of $974.32, matures in 5 years, and has a current YTM or 7.89%. What is the coupon rate on this bond?