1. You bought a 11-year, 7.6% semi-annual coupon bond today and the current market rate of return...
Question:
1. You bought a 11-year, 7.6% semi-annual coupon bond today and the current market rate of return is 3.56%. The bond is callable in 6 years with a $56 call premium. What price did you pay for your bond?
2. A 5.79% annual coupon, 19-year bond has a yield to maturity of 8.83%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what should the price of the bond be today?
3. A 4.9% annual coupon, 11-year bond has a yield to maturity of 5.03%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is bond price expected to be in one year?
4. A 7.45% annual coupon, 10-year bond has a yield to maturity of 6.79%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Capital Gains Yield for this bond? Please share your answer as a %.
5. A 4.67% annual coupon, 25-year bond has a yield to maturity of 3.76%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year, what is the expected Current Yield for this bond? Please share your answer as a %.