Reference no: EM13609239

Rockne, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,136.73 today and your required rate of return was 4.74 percent. What is the worth of the bond? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Worth of the bond $ Did you pay the right price for the bond? Problem 8.12 Four years ago, Lisa Stills bought six-year, 12.65 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells these bonds at the current price of $891.48, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round answer to 2 decimal places, e.g. 15.25%.) Realised rate of return % Problem 8.22 Adrienne Dawson is planning to buy 10-year zero coupon bonds issued by the U.S. Treasury. If these bonds have a face value of $1,000 and are currently selling at $410.69, what is the expected return on them? Assume that interest compounds semiannually on similar coupon paying bonds. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Effective rate of return %