Question: amazo 1 , 3 ,4, 5 1. Suppose a US company issues a bond with a par value of $1,000, and 20 years to maturity,
amazo 1 , 3 ,4, 5
1. Suppose a US company issues a bond with a par value of $1,000, and 20 years to maturity, and a coupon rate of 5.25 percent paid annually. If the yield to maturity is 4.20 percent, what is the current price of the bond?
Question 3 A German company has outstanding bonds with a 1,000 par value, and they mature in 25 years. Their yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of 975. What is the bond's coupon interest rate? (10 points)
Question 4 A Japanese company has a bond outstanding that sells for 105.43 percent of its 100,000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond? (5 points)
Question 5 A US company issued 25-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value $1,000, what is the yield to maturity? (10 points)
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