Planning to hold the bond till maturity

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1. A 7 year bond with par value 1000 Rupees has a current yield 8.5 percent and a coupon rate of 9 percent. What is the bond's price?

2. Suppose that you are considering investing in a eight-year bond that has a face value of $1,000 and a coupon rate of 8%. What will be the YTM if this bond is currently trading in the market at par?

3. A 8-year bond with 9.25% coupon rate and yield to maturity is 11.75%, assuming annual coupon payment, whereas, another bond with same maturity period, coupon and YTM rate is available but with semi-annual coupon payment. What option you would select in annual and semi-annual if you are planning to hold the bond till maturity.

Reference no: EM132544063

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