Question

Well Supply offers 7.5 percent coupou boods with se p as ments and a yield to maturity of percent. The boods e n 10 Sears. What is the market price per bond if the face value is $100 A $698.86 B. $966.02 C. $864.10 D. $355.23 E. $971.47 + Global Communications has a 7 percent. semiannual coupon bond - standing with a current market price of $1.030. The bood has a partice of $1,000 and a yield to maturity of 6.72 percent. How many years until this bond matures? A. 25.05 years B. 20.50 years C. 9.79 years D. 19.26 years E. 19.92 years 5. A 16-year, 4.5 percent coupon bond pays interest annually. The bond has a face value of $1.000. What is the percentage change in the price of this bond if the market yield to maturity drops to 5.2 percent from the current rate of 5.5 percent? A. 3.33 percent decrease B. 4.82 percent decrease C. 3.33 percent increase D. 4.82 percent increase E. 5.64 percent increase 6. The outstanding bonds of The River Front Ferry carry a 5 percent coupon The bonds have a face value of $1.000 and are currently quoted at 102.9% of face value. What is the current yield on these bonds? A. 2.90 percent

Answer 1

If Semi Annual Coupon Nper 20 Pmt 15*2 1000*0.075*1/2 0.08*1/2 $ Rate 37.50 0.04 1,000.00 Pmt Nper Pv Fv Rate payment Number of periods Present value Face value Yield to maturity FV $ (-PV(rate,nper,pmt,fv)) (-PV(0.04,20,37.50, 1000)) $966.02 $966.02 Answer:B Current price of the bond