Problem 1: Bond Yields:
Night Hawk Co. issued 15-year bonds two years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
Problem 2: Bond Prices:
App Store Co. issued 15-year bonds one year ago at a coupon rate of 6.1 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.3 percent, what is the current bond price?
Problem 3: Discounted Cash Flows Analysis:
If the appropriate discount rate for the fallowing cash flows is 9.29 percent per year, what is the present value of the cash flow?
Year Cash Flow
1 $1,900
2 2,300
3 4,500
4 5,100