Question
Please answer the following questions. 1.If a company has a 7% coupon rate, payable semiannually and the bonds mature in 10 years, have a face
Please answer the following questions.
1.If a company has a 7% coupon rate, payable semiannually and the bonds mature in 10 years, have a face value of $1,000, and a yield to maturity of 8%. What is the price of the bonds?
2.A company's bonds will mature in 30 years. The bonds have a face value of $1,000 and an 7% coupon rate, paid semiannually. The price of the bonds is $1,550. The bonds are callable in 5 years at a call price of $1,450. What is their yield to maturity? What is their yield to call?
3.A 14-year, 14% semiannual coupon bond with a par value of $1,000 may be called in 5 years at a call price of $1,030. The bond sells for $1,150. (Assume that the bond has just been issued.)
a.What is the bond's yield to maturity?
b.What is the bond's current yield?
c.What is the bond's capital gain or loss yield?
d.What is the bond's yield to call?
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