1 A 7%, five-year bond is callable in two years at a call price of $2,000. The bond is currently priced in the market at $1,770. What is the issues current yield? P10.

2 A certain bond has a current yield of 8.1% and a market price of $925.50. What is the bonds coupon rate?

P10.3 Connor buys a 12% corporate bond with a current yield of 8%. How much did he pay for the bond?

You are considering the purchase of a $1,000 par value bond with an 6.5% coupon rate (with interest paid semiannually) that matures in 12 years. If the bond is priced to provide a required return of 8%, what is the bonds current price?

P11.2 Two bonds have par values of $1,000. One is a 5%, 15-year bond priced to yield 8%. The other is a 7.5%, 20-year bond priced to yield 6%. Which of these has the lower price? (Assume annual compounding in both cases.)