Question: Please answer all and explain how you did it so that I can learn how to solve bond questions. I got all of the answers
Please answer all and explain how you did it so that I can learn how to solve bond questions. I got all of the answers wrong for these. Thank you in advance!
A 5% coupon bond pays interest semiannually and has 15 years left until maturity. Its face value is $1000, and it is currently selling for $900. Its yield to maturity is:
A 9% coupon bond pays interest annually and has 5 years left until maturity. Its face value is $1000, and it is currently selling for $1085. What rate of return do investors require of this bond today?
An 8% coupon bond pays interest semiannually and has 6 years left until maturity. Its face value is $1000, and it is currently selling for $1072. Would you purchase this bond if your required rate of return on the bond were 5.4%?
A 7% coupon bond pays interest semiannually and has 12 years left until maturity. Its face value is $1000, and investors require a return of 6% on this bond. The current price of the bond would be:
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