How do find what is the yield to maturity

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Problem 1: A Microsoft, Incorporated bond has a coupon rate of 8.5%, matures in 12 years. What is the value of this bond today if the current market rate is 11.o4%?

Problem 2: A ten-year bond pays 7% interest (coupon) on $1,000 face value. If it currently sells for $1,195, what is its approximate yield to maturity?

Problem 3: A ten-year bond, with par value equaling $1,000, pays 7% coupon. If similar bonds are currently yielding 6%, what is the market value of the bond?

Problem 4: If 20-year corporate bonds are currently selling for $988.64 with 6% being compensated to investors in coupons, what is the yield to maturity?

Problem 5: A project with a 3 year life and a cost of $28,000 generates revenues of $8,000 in year 1, $12,000 in year 2, and $17,000 in year 3. If the discount rate is 3%, what is the NPV of the project?

Reference no: EM132811845

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