question 1 Compare the following bond:

A) Today, a bond has a coupon rate of 5.02 percent, par value of 1,000 dollars, YTM of 8.72 percent, and semi-annual coupons with the next coupon due in 6 months. One year ago, the bonds price was 989.25 dollars and the bond had 13 years until maturity. What is the current yield of the bond today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

B) Bond A has a coupon rate of 4.34 percent, a yield-to-maturity of 4.36 percent, and a face value of 1,000 dollars; matures in 12 years; and pays coupons annually with the next coupon expected in 1 year. What is (X + Y + Z) if X is the present value of any coupon payments expected to be made in 4 years from today, Y is the present value of any coupon payments expected to be made in 9 years from today, and Z is the present value of any coupon payments expected to be made in 14 years from today?

C) Bond A pays annual coupons, pays its next coupon in 1 year, matures in 14 years, and has a face value of 1,000 dollars. Bond B pays semi-annual coupons, pays its next coupon in 6 months, matures in 11 years, and has a face value of 1,000 dollars. The two bonds have the same yield-to-maturity. Bond A has a coupon rate of 4.94 percent and is priced at 572.18 dollars. Bond B has a coupon rate of 11.46 percent. What is the price of bond B?

Question 2:

A) Castor owns one bond A and one bond B. The total value of these two bonds is 1,059.74 dollars. Bond A pays semi-annual coupons, matures in 10 years, has a face value of 1,000 dollars, and pays its next coupon in 6 months. Bond B pays annual coupons, matures in 14 years, has a face value of 1,000 dollars, has a yield-to-maturity of 11.94 percent, and pays its next coupon in one year. Both bonds have a coupon rate of 4.04 percent. What is the yield-to-maturity for bond A? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

B) Two years ago, the price of a bond was 978.37 dollars, and one year ago, the price of the bond was 1,034.32 dollars. Over the past year, the bond paid a total of 66.06 dollars in coupon payments, which were just paid. If the bond is currently priced at 1,024.14 dollars then what was the rate of return for the bond over the past year (from 1 year ago to today)? The par value of the bond is 1,000 dollars. Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

C) Bonds issued by Fairfax Mechanical were priced at 951.3 dollars six months ago and are priced at 935.61 dollars today. The bonds have a face value of 1,000 dollars, pay semi-annual coupons, and just made a coupon payment. The bonds had a percentage return over the past six months (from 6 months ago to today) of 6.9 percent. What is the coupon rate of the bonds?