1. (Kessel Inc. offers a zero-coupon bond that has 20 years to maturity and the yield-to-maturity of similar bonds is 3%. What is the market price of Kessel Inc.'s bond?
2. A Chicago, Illinois municipal bond has a maturity date in 25 years, offers a 7% coupon rate, and is currently priced at $1,039. If bond investors face a average tax rate of 25%, what would the yield be on a corporate bond with similar characteristics?
3. Jakku Corp. bonds bearing a coupon rate of 3%, pay coupons seminannually, have six years remaining to maturity, and are currently priced at $970 per bond. What is the yield to maturity?
4. The bonds of Geonosis Corp. carry a 5% coupon rate and mature in 6 years. Bonds of equivalent risk yield 3%. What is the market value of Geonosis' bonds?
5. Kamino Corporation's bonds carry a 3% coupon rate, pay coupons semiannually, and mature in 5 years. Similar bonds have a yield of 4%. What is the CURRENT YIELD for Kamino Corporation's bonds?