1. Abc bonds have a coupon rate of 9 percent, pay interest semiannually and sell at par. what is each bonds market price and interest payments
2. last year theo purchased a fixed rate 7 year bond at par that has a coupon rate of 6.5 percent. if the current market rate for this type and quality bond is 6.8 percent then he should expect. a. his interest payments to increase. b. the bonds yeild to maturity to remain constant. c. the current yeild today to be less than 6.5 d. the bond current market price to exceed face value e. to realize a capital loss if he sold the bond at market price
3. A bond has a coupon rate of 6 percent and matures in 10 years. The next semiannual interest payment will be paid 1 month from now. Which of the following do you know with certainty? a.the bond sells at a discound b.the bond sells at premium c. the dirty price is higher then the clean price. d. the clean price is higher then dirty price e. the market price exceeds par value
4. A Japanese company has a bond outstanding that sells for 90 percent of its 100,000 par value. the bond has a coupon rate of 4.9 percent paid annually and mature in 20 years. what is the yeild to maturity.
5. Bond with the following characteristics. par 1,000 time to maturity 22 years coupon rate 10 percent semiannual payments calculate the price of the bond with the following ytm 10% 13% and 7%
6. Skolits corp issued 15 year bonds 2 years ago at a coupon rate of 8.5 percent. the bonds make semiannual payments. If these bonds currently sell for 106 percent of par value what is the ytm
7. You find a zero coupon bond with a par value of 10,000 and 21 years to maturity. the yield to maturity on this bond is 4.3 percent. Assume semiannual compounding periods. What is the dollar price of the bond?