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MTV Corporation has 7 percent coupon bonds on the market with a par of $1,000 and 8 years left to maturity. The bonds make
MTV Corporation has 7 percent coupon bonds on the market with a par of $1,000 and 8 years left to maturity. The bonds make semi-annual interest payments. If the market interest rate on these bonds is 6 percent, what is the current bond price? Question 3. Jones Corporation has zero coupon bonds on the market with a par of $1,000 and 8 years left to maturity. If the market interest rate on these bonds is 6 percent. what is the current bond price? (Use the semi-annual interest payment model.) Question 4. Wilson Corporation has 5 percent coupon bonds on the market with a par of $1,000 and 6 years left to maturity. The bonds make annual interest payments. If these bonds currently sell for $800, what is its yield to maturity (YTM)? Question 5. Linville Corporation issued 15-year, par $1,000 bonds ten years ago at a coupon rate of 5 percent. The bonds make semi-annual payments. If these bonds currently sell for 90 percent of par value, what is its yield to maturity (YTM)? Question 6. Pecos Company has just issued a 10-year, 10 percent coupon rate, $1,000- par bond that pays interest semiannually. Three years later, if the going rate of interest on the bond falls to 8 percent, what is the value of the bond? Question 7. Karen just bought a 10-year, 5% coupon bond with $1,000 par for $825. If she sells this bond four years later for $950, what is her realized yield in year 4 (with semi-annual interests)?
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