What must the coupon rate be on these bonds

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Q1) Chamberlain Co. wants to issue new 14-year bonds for some much-needed expansion projects. The company currently has 10.4 percent coupon bonds on the market that sell for $1,162.85, make semiannual payments, and mature in 14 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000.

Q2) McConnell Corporation has bonds on the market with 13 years to maturity, a YTM of 11.0 percent, a par value of $1,000, and a current price of $1,176.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?

Q3) Weismann Co. issued 13-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 11 percent, what is the current bond price?

Q4) Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 14 years to maturity, and a coupon rate of 7 percent paid annuallly. If the yield to maturity is 10 percent, what is the current price of the bond?

Reference no: EM133183009

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