1. Beam Inc. bonds are trading today for a price of $957.04. The bond pays annual coupons with a coupon rate of 7.5% and the next coupon is due in one year. The bond has a yield to maturity of 7.97%. How many years are there until the bond matures?
2. What is the yield to maturity of a 9.2 semiannual coupon bond with a face value of $1000 selling for $860.94 that matures in 9 years.
3. Iron Maiden became the first heavy-metal band to sell bonds when it arranged a $30 million deal in February 1999. The collateral on the bonds (and source of cash flow for interest and principal payments) consisted of future royalties from the band's albums like "The Number of the Beast." Each bond in the issue had a face value of $1,000, a term of 17 years and paid semiannual coupons at the rate of 77%.The yield to maturity on the bond was 55%. At what price did each of the bonds sell?
4. With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.8% and will mature on this day 21 years from now. The yield on the bond issue is currently 6.25%. At what price should this bond trade? today, assuming a face value of $1,000 and annual coupons?