Problem 7-1 Interest Payments (LG7-1)

Determine the interest payment for the following three bonds (Assume a $1,000 par value.) (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places):

3.05 percent coupon corporate bond (paid semiannually)

$

3.80 percent coupon Treasury note

$

Corporate zero coupon bond maturing in ten years

$

Problem 7-4 Time to Maturity (LG7-1)

A bond issued by IBM on December 1, 1996, is scheduled to mature on December 1, 2096. If today is December 2, 2009, what is this bonds time to maturity? (Use 365 days a year.)

Time to maturity

years