$1.$What is the most we should pay for a bond with a par value of $$1000,$ coupon rate of $8\mathrm{.}2\%$

paid annually, and a remaining life of $24$ years? The yield to maturity is $4\mathrm{.}4\%.$ Assume annual

discounting. $($Round your answer to the nearest penny.$)$

Answer:

$2.$ Mickey and Minnie just bought a zero coupon bond for $$416\mathrm{.}56,$ but they cannot recall when

it matures. The yield to maturity equals $13\mathrm{.}3\%.$ Can you help Mickey and Minnie? The

bond's face value is $$1000.($Assume annual discounting$)($Enter your answer in years and

round to $2$ decimal places.$)$

Answer:

$3.$ Your business manager forwards the following information to you. Your businesses earned a

real rate of return of $9\mathrm{.}2\%$ last year and inflation for the same period was $4\mathrm{.}6\%.$ What was

your nominal rate of return? $($Note: nominal rates of return can be positive or negative.$)($Use

the exact method rather than the approximation method here.$)($Round to $100$th of a percent

and enter as a percentage, e$.$g$.12\mathrm{.}34\%$ as $12\mathrm{.}34.)$

Answer:

$4.$How much would you pay for a zero coupon bond with a par value of $$1000,$ a maturity of $5$

years, if your required rate of return is $7\mathrm{.}5\%?$ Assume annual discounting. $($Round your answer

to the nearest penny.$)$

Answer:

$5.$Compute the current yield on a bond with a yield to maturity of $4\mathrm{.}2\%,$ a par value of $$1000,$ a

coupon rate of $4\mathrm{.}6\%$ paid semi$-$annually, a remaining life of $26$ years? $($Round to $100$th of a

percent and enter as a percentage, e$.$g$.12\mathrm{.}34\%$ as $12\mathrm{.}34$ and state as an annual rate.$)$

Answer:

Please answer each indiviudual questions