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1. Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued...

1. Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 25 years to maturity, and a coupon rate of 7.1 percent paid annually. If the yield to maturity is 8.2 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bond price €

2.

You find a zero coupon bond with a par value of $5,000 and 19 years to maturity.

  

If the yield to maturity on this bond is 5.1 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  Bond price $   
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Answer #1

7.10% COUPON RATE 25 (years to maturity) NPER 71.00 (face value x coupon rate) € PMT 1,000.00 FACE VALUE € 8.20% YIELD PRICE

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