Reference no: EM13576013
1) Ninja Co. issued 13-year bonds a year ago at a coupon rate of 7.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 6.2 percent, what is the current bond price?
2) Bond P is a premium bond with a 12 percent coupon. Bond D is a 7 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 9 percent, and have seven years to maturity.
What is the current yield for bond P and bond D?
Current yield
Bond P %
Bond D %
If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P and bond D? (Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)))
Capital gains yield
Bond P %
Bond D %
3) Page Enterprises has bonds on the market making annual payments, with ten years to maturity, and selling for $968. At this price, the bonds yield 6.90 percent.
What must the coupon rate be on the bonds?
4) Ponzi Corporation has bonds on the market with 16.5 years to maturity, a YTM of 6.30 percent, and a current price of $1,036. The bonds make semiannual payments.
What must the coupon rate be on these bonds?