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Q.1. Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8


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Q.1. Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? What is the YTM? Q.2 A Japanese company has a bond outstanding that sells for 87 percent of its 100,000 yen par value. The bond has a coupon rate of 4.3 percent paid annually and matures in 18 years. What is the yield to maturity of this bond? Q.3 Page Enterprises has bonds on the market making annual payments, with nine years to maturity, and selling for $948. At this price, the bonds yield 5.9 percent. What must the coupon rate be on the bonds? Q.4 Nano Corporation issued 14-year bonds a year ago at a coupon rate of 6.9 percent. The bonds make semiannual payment. If the YTM on these bonds is 5.2 percent, what is the current bond price?

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