Annual return with monthly compounding

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1. Landover ridge offers a 10 percent annual coupon bond with semiannual payments. The yield to maturity is 8 percent and the bonds mature in 8 years. What is the price per bond if the face value is $1000?

2. Paul purchased Prince Henry's golf club for 1,000. Saul sold the golf clubs 10 years later for $10,000. What was Paul's annual return with monthly compounding (an APR)?

3. Sally Inc, has only one bond outstanding. The bond has a total par value of $100 million and the bond currently traded at 90% of par. If the bond pays a 5% annual coupon and a yield to maturity of 6%, what is Sally's cost of debt?

Reference no: EM132072636

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