1. A 20 year. $1000 per value bond has a 5% coupon rate. Coupons are paid semi-annually, What is the price of the bond if the yield to maturity on the bond is 6%?

2.  A 10 year. $1000 per value bond has a 5.5% coupon rate. Coupons are paid annually, What is the yield to maturity on the bond if the price is $1057?

3. A 20 year. $1000 per value bond has a 5% coupon rate. Coupons are paid annually, What is the price of the bond if the yield to maturity on the bond is 6%?

4. A bond offers a coupon rate of 5% and a yield to maturity of 5.5%. What is the semi-annual payment received by bondholders?

5. You are paying 0.2% per month interest on your outstanding credit card balance. What is the effective annual rate on your credit card?

6. A worker has decided to retire when she save 1M. if she hopes to retire in 30 years. How much money she will need to put in the bank today. if it will earn 11% per year?

Answer rating: 100% (QA)

1 Using the bond pricing formula PV C11rnr FV1rn where PV is the present value or price of the bond C is the semiannual coupon payment r is the yield ... View the full answer