Question 20

Kaiser Industries has bonds on the market making annual payments, with 18 years to maturity, a par value of $1,000, and a current price of $1,105.78. At this price, the bonds yield 7.5 percent. What is the coupon rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Question 22

The outstanding bonds of Winter Tires Inc. provide a real rate of return of 2.1 percent. If the current rate of inflation is 2.7 percent, what is the actual nominal rate of return on these bonds?

Question 23

Dexter Mills issued 30-year bonds one year ago at a coupon rate of 10.5 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM is 7.3 percent, what is the current bond price?

(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)