1. Koala Co. has issued 5% annual coupon bonds that are currently selling at a yield to maturity of 6% and current yield of 5.33%. What is the remaining maturity of these bonds?
2. A bond has 12-years until maturity, pays a coupon rate of 4% on an annual basis, and sells for $1,080. What is the yield to maturity of the bond?
3. Your firm has an outstanding bond issue with a coupon rate of 6.2%, and it sells at a yield to maturity of 4.8%. Your firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer to sell at face value?