FIN 515 Devry entire course DEVRY FIN 515 Week 4 Problem Set

DEVRY FIN 515 Week 4 Problem Set

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FIN 515 Week 4 Problem Set
Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of
8%. The bonds have a par value of $1,000. The yield to maturity is 9%. What is the
current market piece of these bonds? The bonds will mature in 5 years.
Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a
coupon rate of 10%. The bonds are currently selling for $850. What is their YTM?
Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The
bond has a par value of $1,000. There are eight years to maturity. The yield to
maturity is 9%. What is the current price of the bond?
Bonds-4. A particular corporate bond has a par value of $1,000. Coupon payments
are $40 and are paid twice a year. Seven years are left on the life of the bond.The
YTM is 9%. What is the price of the bond?
Bond-5. A given bond has 5 years to maturity. It has a face value of $1,000. It has a
YTM of 5% and the coupons are paid semiannually at a 10% annual rate. What does
the bond currently sell for?