1. Bond Yields. Slurpy Corp. issued 20-year bonds 5 years ago at a coupon rate of 10%. The bonds make semiannual payments. If these bonds currently sell for 95% of par value. What is the YTM? The YTM is_______%.
2. Coupon Rates. Gramme Enterprises has bonds on the market making annual payments, with 15 years to maturity, and selling for $1400. At this price, the bonds yield 6%. What must the coupon rate be on Gramme's bonds? The coupon rate is______%
3. Calculating Real Rates of Return. If Treasury bills are currently paying 3.75% and the inflation rate is 2.00%, what is the exact (do not ignore cross-product terms) real rate of interest? The exact real rate of interest is _____%. (You will still round to two decimal places.)