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Problem I: Company A offers a bond with a coupon of 8 pereent with semianinual pay ments and a yield to maturity of 6.8 percent.

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Problem I: Company A offers a bond with a coupon of 8 pereent with semianinual pay ments and a yield to maturity of 6.8 percent. The bonds mature in 6 years. What is the market price of a $1,000 face value bond? Is this a discount or premium bond? Problem 2: Calculate the price of a 6 percent coupon bond with 14 years left to maturity and a market interest rate of 7 percent. (Assume interest poyments are semiannual and par value is $1,000.) Is this a discount or premium bond? Problem 3; A 4.8 percent coupon 15-year bond with 11 years left to maturity is offered for sale at $1,023.5. What yield to maturity is the bond offering? (Assume interest payments are paid semiannually and par value is $1,000 ) Problem 4: A bond with 9 years to maturity is selling for $1,012.3 and has a yicld to maturity of 6.4 percent. If this bond pays its coupon payments semiannually and par value is 51,000 , what is the bond's annual coupon rate? Problem 5: The Company X offers a 5 percent bond with a current market price of $960.48. The yield to maturity is 5.8 percent. The face value is $1,000. Interest is paid semiannually. How many years until this bond matures? P==F=1/4=N=

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