Can someone please help me with this assignment

1.A zero coupon bond has a face value of $1,000 and matures in 66 years. Investors requirea(n) 6.5%

annual return on these bonds. What should be the selling price of thebond?

2.Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 21 years, for $214.70. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of thebond's life?

3.What is the percentage change in price for a zero coupon bond if the yield changes from 7.5% to 55%?The bond has a face value of $1,000 and it matures in 15 years.Use the price determined from the first yield, 7.5%, as the base in the percentage calculation.

4.Beam Inc. bonds are trading today for a price of $840.81.The bond currently has 13 years until maturity and has a yield to maturity of 3.55%.The bond pays annual coupons and the next coupon is due in one year.What is the coupon rate of the bond?

5.With celebrity bonds, celebrities raise money by issuing bonds to investors.The royalties from sales of the music are used to pay interest and principal on the bonds.In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland.The bond was issued with a coupon rate of 6.85% and will mature on this day 21 years from now.The yield on the bond issue is currently 6.15%.At what price should this bond trade today, assuming a face value of $1,000 and annual coupons?

6.What is the price of a 66-year, 7.7% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 6.9%?

7.As the maturity date of a bond approaches:

A.

Its price will not change.

B.

The price of the bond approaches its face value.

C.

The bond will always sell at a discount.

D.

Default risk increases.

E. The bond will always sell at a premium.

8.If the nominal rate of interest is 13.16% and the real rate of interest is 8.21%, what is the expected rate of inflation?

9. Consider a $1,000 face value zero coupon bond which matures in 15 years. What is the fair price for the bond if the yield is 5%?

A.

$536.39

B.

$465.32

C.

$386.45

D.

$481.02

E.

$520.68

10. You can buy a bond with a face value of $1,000 and annual coupon payments of $80. The yield to maturity on bonds of similar risk is 7%. Should this bond sell.

A.

at par

B.

at a discount

C.

at a premium