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What is the coupon rate

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Question -

1. A $1000 par value bond that pays interest annually just paid 120$ in interest. What is the coupon rate?

2. A 9.80% coupon, 6 year annual bond is priced at $922. What is the current yield for this bond?

3. What is the price of a $1000 par value, semiannual coupon bond with 6 years to maturity, A coupon rate of 07.10% and a yield to maturity of 5.50%?

4. What is the price of a $1000 par value, 17 year, annual coupon bond with a 9.10% coupon rate and a yield to maturity of 3.90%?

5. You bought a 23 year, 9.40% semiannual coupon Bond today and the current market rate of return is 8.90%. The bond is callable in four years With a $64 call premium. What price did you pay for your bond?

6. A 5.50% annual coupon 24 year bond has a yield to maturity of 8.20%. Assuming the par value is $1000 and the YTM is expected not to change over the next year.

Required -

What should the price of the bond be today?

What is the price expected to be in one year?

What is the expected capital gain yield for this bond?

What is the expected current yield for this bond?

Reference no: EM132717522

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