Consider some bonds with an annual coupon payment of 725


1. Consider some bonds with an annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the current yield to maturity for these bonds?

2. Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000 and makes semiannual interest payments. If you require a yield of 11%, what is the most you are willing to pay for these bonds?

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Financial Management: Consider some bonds with an annual coupon payment of 725
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