What would the current yield be at the time of purchase

Reference no: EM133559699

Question 1. Suppose that you just purchased a Baa rated $1000 annual coupon bond with a 2.9 % coupon rate and a 9 -year maturity. If the yield to maturity on the bond is 8.845 %, how much did you pay?

Question 2. Suppose that you purchased a Baa rated $1000 annual coupon bond with a 5 % coupon rate and a 7-year maturity at par value. If you sold the bond two years later, and the yield on comparable debt is 7.666 %, what would your capital gain(+)/loss(-) be? (Enter dollars and cents.)

Question 3. Suppose that you purchased a Baa rated $1000 annual coupon bond with a 3.8 % coupon rate and a 10-year maturity at 2 % above par value. What would the current yield (in %) be at the time of purchase (4 digits)?

Question 4. Suppose that you purchase a Baa rated $1000 semi-annual coupon bond with a 6.7% coupon rate and a 5-year maturity yielding 9.172%, what would the price be?

Reference no: EM133559699

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