What must the coupon rate be on the bonds

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Reference no: EM131853643

1. Kiss the Sky Enterprises has bonds on the market making annual payments, with 18 years to maturity, and selling for $970. At this price, the bonds yield 8.1 percent. What must the coupon rate be on the bonds?

a. 7.78%

b. 15.56%

c. 7.88%

d. 8.02%

e. 8.10%

2. Staind, Inc., has 8 percent coupon bonds on the market that have 15 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 9 percent, what is the current bond price

a. $1,089.59

b. $965.36

c. $919.39

d. $873.42

e. $1,030.00

Reference no: EM131853643

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