A bond has a yield to maturity of 8.7 percent, a coupon of 7.5 percent paid semiannually,

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Question:

A bond has a yield to maturity of 8.7 percent, a coupon of 7.5 percent paid semiannually, a $1,000 face value, and a maturity date 21 years from today. What is the current yield?

A. 7.91 percent
B. 9.05 percent
C. 8.47 percent
D. 9.38 percent
E. 9.46 percent

Chadron Motors wants to issue new 10-year, $1,000 face value bonds at par. The company currently has 6.35 percent coupon bonds on the market that sell for $997.81, make semiannual interest payments, and mature in 10 years. What coupon rate should the company set on its new bonds?

A. 6.47 percent
B. 6.38 percent
C. 6.50 percent
D. 6.37 percent
E. 6.58 percent

You purchase a bond with an invoice price of $1,104.68. The bond has a coupon rate of 5.5 percent, semiannual coupons, and there are two months to the next coupon date. What is the clean price of the bond?