What is the price of a 1000 par value bond with an 8 coupon


1. What is the price of a $1000 par value bond with an 8% coupon rate paid annually, if the bond is priced to yield 8% and has 9 years to maturity?

2. What would be the price of the bond in #1 if the yield decrease 6%?

3. What would be the price of the bond in #1 if the yield rose to 10% and was callable at 110% of par in 4 years?

4. What is the yield to maturity for a Zero Coupon Bond that has 15 years left to maturity and is selling for $209?

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Financial Management: What is the price of a 1000 par value bond with an 8 coupon
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