1. A bond has ten years until maturity. The face value on the bond is $1,000.00, while the coupon rate attached to the bond is 9.625%. The bond pays coupons on an annual basis. Investors seek a 5.49% return on the bond. Find the price of the bond based on the yield to maturity.
2. LMB Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.4%. If the current market interest rate is 7.2%, at what price should the bonds sell?
3. A bond has ten years until maturity. The face value on the bond is $1,000.00, while the coupon rate attached to the bond is 9.625%. The bond pays coupons on an annual basis. Investors seek a 5.49% return on the bond. What is the yearly coupon for this bond?