Find the bond values or yields. Assume that the face value of the bonds is $1,000.

(a) Consider a bond paying a coupon rate of 6% per year semiannually when the market interest rate is only 2.5% per half-year, (i.e., the YTM is 5%). The bond has ten years until maturity. Find the bond’s price today.

(b) What is the bond price six months from now in part (1)?

(c) A zero-coupon bond with a face value of $1,000 and maturity of thirty years sells for $250.

What is its yield to maturity?

(d) A 15-year maturity, 4.2% coupon bond paying coupons semiannually is callable in five years at a call price of $1,040. The bond currently sells at a yield to maturity of 3.6% (1.8% per half-year). What is the bond price given the YTM?

(e) What is the yield to call based on the price computed in part (4)?

(f) ABC Enterprises’ bonds currently sell for $975. They have a 10-year maturity, a semiannual coupon of $15. So total annual coupon payment is $30. Compute their YTM, coupon rate, and current yield.