The yield to maturity of the bond is 42 percent what is the


1. Yan Yan Corp. has a $10,000 par value bond with a coupon rate of 4.8 percent paid semiannually and 22 years to maturity. The yield to maturity of the bond is 4.2 percent. What is the price of the bond?

2. Calculate for forward differential (either premium or discount) on the CAD. The spot rate is EUR 0.70/CAD and the 3 months forward rate is EUR 0.80/CAD. The EUR is the home currency. [CAD = Canadian Dollar]

a) +50%

b)-50%

c)-57.14%

d)+57.14%

3. Calculate the gross rate between the SAR (Saudi Arabia Riyal) and the BHD (Bahraini dinar). The following is a list of available rates:

USD 1.17 / EUR

USD 0.27 / SAR

SAR 4.38/ EUR

INR 64.4 / USD

BHD 0.38 / USD

A) BHD 0.1026 / SAR

B) SAR 9.7466 / BHD

C) SAR 0.1026 / BHD

D) BHD 9.7466 / SAR

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Financial Management: The yield to maturity of the bond is 42 percent what is the
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