What is the bond annual coupon rate

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1. It is now January 1, 2017. What is the value of a 25 year, monthly coupon, $1,000 par value bond that was originally issued on July 1, 2010 with 11.60% coupon rate per annum, if the current required rate of return is 11%?

2. A bond has a current market price of $835, a maturity value of $1,000, and matures in 30 years. If coupons are paid semi-annually and the bond is priced to yield 11.5%, what is the bond's annual coupon rate?

3. A bond has a current price of $845.34, a maturity value of $1,000, and a coupon rate of 10% per annum. If coupons are paid quarterly and the bond is priced to yield 12% per year, what is the bond's term to maturity to the nearest year?

4. Suppose you hold a diversified portfolio consisting of an $8,500 investment in each of 25 different common stocks. The portfolio beta is equal to 1.39. You have decided to sell one of the stocks in your portfolio with a beta equal to 1.7 for $8,500 and to use that amount to buy another stock for your portfolio. Assume the new stock's beta is equal to 2.1. Calculate your portfolio's new beta.

Reference no: EM132740179

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