1. Today, a bond has a coupon rate of 9.6 percent, par value of $1000, 13 years until maturity, YTM of 8.6 percent, and semiannual coupons with the next one due in six months. One year ago, the price of the bond was $1,068. What is the current yield of the bond today?
2. Six years ago, Allen Corporation issued bonds that pay annual coupons, have a face value of $1,000, have an annual coupon rate of 8.4 percent, and are scheduled to mature in four years. One year ago, you bought one of those bonds for $968. The bond just paid a coupon. If the percentage return on your bond was 5.6 percent over the past year, what is the price of the bond today?
3. The coupon rate of Cafe bonds is greater than the yield-to-maturity of these Cafe bonds. Which of the following assertions is most likely to be true?
4. Bond XYZ and bond ABC both pay annual coupons, mature in 5 years, have a face value of $1000, and have the same yield-to-maturity. Bond XYZ has a coupon rate of 8.0 percent and is priced at $1,029.72. Bond ABC has a coupon rate of 6.5 percent. What is the price of bond ABC?