What is the bond annual yield

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Questions - BONDS VALUATIONS PRACTICE

Q1. A bond maturing in 20 years at a par value of $1,000 has a coupon rate of 6% and current yield of 8%. Is this a discount bond or a premium bond? What is the price of the bond?

Q2. A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 4% and current yield of 3%. Is this a discount bond or a premium bond? What is the price of the bond?

Q3. A bond maturing in 10 years at a par value of $1,000 has a coupon rate of 9% and current market price of $1,145.68. What is the bond's annual yield?

Q4. A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 5%. If the current interest rate is 4%, what is the price of the bond?

Q5. A bond maturing in 15 years at a par value of $1,000 has a coupon rate of 7% and current market price of $1,140.95. If the bond is callable after 5 years at $1,050, what is the bond's yield to call?

Reference no: EM133006843

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