Bond makes semiannual coupon payments

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1. A Ford Motor Co. coupon bond has a coupon rate of 7% and pays annual coupons. The next coupon is due tomorrow and the bond matures 36 years from now. the yield on the bondis 6.2%, what price should the bond trade today assuming the face value si $1000.

2. If the nominal rate of interest is 12.46% and the real interest rate is 8.35% what is the expected rate of? inflation?

3. A three-year bond has an 8 percent coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10 percent, calculate the price of the bond assuming that the bond makes semiannual coupon payments.

Reference no: EM131835381

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