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What is the coupon payment for bond

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Reference no: EM133076314

1) Consider a 25?-year bond with a face value of $1,000 that has a coupon rate of 5.8%?, with semiannual payments.

a. What is the coupon payment for this? bond?

b. Draw the cash flows for the bond on a timeline.

2) Your company wants to raise ?$8.5 million by issuing 25?-year ?zero-coupon bonds. If the yield to maturity on the bonds will be 4%  (annual compounded APR?), what total face value amount of bonds must you? issue?

3) The yield to maturity of a $1,000 bond with a7.2% coupon? rate, semiannual? coupons, and two years to maturity is 7.8% ?APR, compounded semiannually. What is its? price?

4) Suppose a? ten-year,$1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for $1,034.61.

a. What is the? bond's yield to maturity? (expressed as an APR with semiannual? compounding)?

b. If the? bond's yield to maturity changes to 9.5% ?APR, what will be the? bond's price?

5) Suppose a? seven-year, $1,000 bond with a 7.9% coupon rate and semiannual coupons is trading with a yield to maturity of 6.62%.

A) Is this bond currently trading at a? discount, at? par, or at a? premium? Explain.

B) If the yield to maturity of the bond rises to 7.05% ?(APR with semiannual? compounding), what price will the bond trade? for?

Reference no: EM133076314

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