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What is the current yield of the bond

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1. Assume you have a bond with a semi-annual interest payment of $30, a par value of $1,000 and a current market price of $920. What is the current yield of the bond?

2. If you purchase a 10-year TIPS for $100,000, and coupon rate is 2% what is the interest payment you will receive after first 6 months if the CPI increased by 3%. Do not enter $ sign. Round the answer to 2 decimal places.

3. A firm borrows $40,000 from the bank at 15 percent compounded annually to purchase some new machinery. This loan is to be repaid in equal installments at the end of each year over the next 6 years. How much will each annual payment be?

Reference no: EM131825032

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