Question 1: Bond Pricing. A 6-year Circular File bond pays interest of $80 annually and sells for $950. What are its coupon rate, current yield, and yield to maturity?
Question 2. Bond Pricing. If Circular File (see question above) wants to issue a new 6-year bond at face value, what coupon rate must the bond offer?
Question 3. Bond Yields. A bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100.
a. What is the current yield on the bond?
b. What is the yield to maturity?