Question
Please show work! A) I just purchased a $1,000 zero-coupon bond that matures in 8 years. If the yield-to-maturity is 6.5%, how much did I
Please show work!
A) I just purchased a $1,000 zero-coupon bond that matures in 8 years. If the yield-to-maturity is 6.5%, how much did I pay?
B) You are considering purchasing a $1,000 Alpha Corp. bond at par. The bond has a 10% coupon rate, paid semiannually, and matures in 4 years.What is its YTM?
C) Beta Enterprises is issuing 10 year bonds with a face value of $1,000. The coupon rate is 10%, paid semiannually. What is the price of the bond if the YTM is 8%?
D) Gamma Corporation bonds are selling for $1,386.09. They have a face value of $1,000 and a current yield of 7.2145%. If the YTM is 5%, interest is paid annually, and the bond has 10 years to maturity, what is the coupon rate?
E) Teleco Inc. issued 15 year bonds one year ago at a coupon rate of 4.1 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current bond price?
F) DOT Enterprises issued 20 year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
G) You own a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the YTM is 4.9 percent, what is the price of the bond? Assume semiannual compounding periods.
H) Bourdon Software has 6.4% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 106.8 percent of par. What is the current yield of the bonds?
I) Union Local School District has a bond outstanding with a coupon rate of 3.7 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 3.9 percent, and the bond has a par value of $5,000. What is the price of the bond?
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