Suppose a five-year, $1,000 bond with annual coupons has a price of $901.36 and a yield to maturity of 5.7%.What is the bond's coupon rate?
Suppose a ten-year, $1,000 bond with an 8.1% coupon rate and semiannual coupons is trading for $1,035.98.
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.9% APR, what will be the bond's price?
The yield to maturity of a $1,000 bond with a 7.1% coupon rate, semiannual coupons, and two years to maturity is 7.9% APR, compounded semiannually. What is its price?
For each of the following pairs of Treasury securities (each with $1,000 par value), identify which will have the higher price:
a. A three-year zero-coupon bond or a five-year zero-coupon bond?
b. A three-year zero-coupon bond or a three-year 4% coupon bond?
c. A two-year 5% coupon bond or a two-year 6% coupon bond?