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Problem 6-15 Bond Pricing (LO2) Maxcorp's bonds sell for $1,090.83. The bond life is 9 years, and the yield to maturity is 71%. What is
Problem 6-15 Bond Pricing (LO2) Maxcorp's bonds sell for $1,090.83. The bond life is 9 years, and the yield to maturity is 71%. What is the coupon rate on the bonds? (Assume a face value of $1,000 and annual coupon payments.) (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Coupon rate Problem 6-18 Bond Returns (LO3) You buy a 20-year bond with a coupon rate of 7.8% that has a yield to maturity of 9.9%.(Assume a face value of $1,000 and semiannual coupon payments.) Six months later, the yield to maturity is 10.9%, what is your return over the 6 months? (Do not ound intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Rate of return Problem 6-22 Real Returns (LO3) Suppose that you buy a 1-year maturity bond with a coupon of 8.5% paid annually. If you buy the bond at its face value, what real rate of return will you earn if the inflation rate is 4%? 6%710.25%? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) Real Rate of Return 4% 6% 10.25%
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