1.Your firm issued 15- year bonds one year ago at a coupon rate of 7%. The bonds make annual payments. If the YTM is 7.5%, what is the current bond price?
2. A firm has bonds on the markets with 9 years to maturity YTM of 7.1% and a current price of $915. The bonds make semiannual payments. What is the coupon rate on the bonds?
3. Your firm needs to raise $1 million and you want to issue 10-year bonds. the yield in the market is 6% and the coupon rate is 6.55. If you decide to issue zero coupon bonds which pay annually , what is the total repayment in 10 years?