Question

1 The Dutch East India Company's bonds offer an annual seven percent coupon, and currently sell for 1,112. These bonds will make semiannual coupon payments for 10 more years until they reach maturity. The going market interest rate of yield to maturity (YT) is 6.5271 percent. What is the bonds Current Yield (CY)? 

15 percent 

3.15 percent 

4.75 percent 

6.29 percent 

6.25 percent 

2 Walther PPK George Larry's bonds mature in nine years offer an annual even percent conte, make surual payments, and have a yield to maturity of eight percent. What is the market value perband considering the face value is $1,000? 896.7035 7.5131 51,085.9434 51.056.1523 QUESTION 19 Consider the information contained in the table below to help answer the next to 5 6

Answer 1

1.
Current Yield is given as=7%*1000/1112
=6.2950%

2.
Price of the bonds is given as=PV(8%/2,9*2,-7%*1000/2,-1000)
=936.70352