b. price?

c. yield to maturity?

4. If a bond with face value of $1,000 and a coupon rate of 8% is selling for $970, is the bond’s yield to maturity more or less than 8%? 5. A bond has 10 years until maturity, a coupon rate of 8%, and sells for $1100. d. What is the current yield on the bond?

e. What is the yield to maturity

f. If after one year from now the bond has a yield to maturity of 8%, what will its price be? What will be the rate of return on the bond? g. If the inflation rate during the year is 3%, what is the real rate of return on the bond? 6. Fill in the table below for the following zero-coupon bonds. The face value of each bond is $1,000. Price| Maturity (years)| Yield to maturity|

$300| 30| -|

$360| * | 8%|

-| 10| 10%|

7. BH has issued consol bonds with coupon payments of $60. If the required rate of return on these bonds (market rate) at the time they were issued was 6%, at what price were they sold to the public? If the required return today is 10%, at what price do the consol bonds sell? 8. SH Corp. has issued 9% annual coupon bonds with a face value of 1000 USD that are now selling at a yield to maturity of 10%. What is the price of these bonds? 9. LA bonds sell for $1065,15; mature in 9 years, and the yield to maturity is 7%. What must be the coupon rate on the bonds? 10. Calculate the market...

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