Airnet auto corporation issued bonds with a coupon rate of


1. Airnet Auto Corporation issued bonds with a coupon rate of 12 percent, pay coupons semiannually, have 7 years remaining to maturity, and are currently priced at $950 per bond. What is the yield to maturity?

a. 12.00%

b. 15.25%

c. 18.15%

d. 13.11%

2. Calculate the current price of a $1,000 par value bond maturing in 10 years with a coupon rate of 12 percent, paid semiannually, that has a YTM of 15 percent?

a. $604

b. $847.08

c. $1,090

d. $1,073

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Financial Management: Airnet auto corporation issued bonds with a coupon rate of
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