FINANCE BOND HW
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1. Page Enterprises has bonds on the market making annual payments, with eleven years to maturity, and selling for $958. At this price, the bonds yield 6.40 percent.
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What must the coupon rate be on the bonds? (Round your answer to 2 decimal places. (e.g., 32.16))
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2. Stone Sour Corp. issued 15-year bonds 2 years ago at a coupon rate of 9.10 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM? (Round your answer to 2 decimal places. (e.g., 32.16))
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Ponzi Corporation has bonds on the market with 19.5 years to maturity, a YTM of 8.00 percent, and a current price of $1,069. The bonds make semiannual payments.
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What must the coupon rate be on these bonds? (Round your answer to 2 decimal places. (e.g., 32.16))
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4. Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has four years to maturity, whereas Bond Dave has 15 years to maturity.
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If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))
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| Percentage change in price of Bond Sam |
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$ [removed] |
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