7. Backwater Corp. has 9 percent coupon bonds making annual payments with a YTM

Question

7. Backwater Corp. has 9 percent coupon bonds making annual payments with a YTM of 8.2 percent. The current yield on these bonds is 8.55 percent. How many years do these bonds have left until they mature? 8. Page Enterprises has bonds on the market making annual payments, with eleven years to maturity, and selling for $958. At this price, the bonds yield 6.40 percent. What must the coupon rate be on the bonds? 9. A Japanese company has a bond outstanding that sells for 95 percent of its 100,000 par value. The bond has a coupon rate of 6.20 percent paid annually and matures in 18 years. What is the yield to maturity of this bond? 10. Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1.000? $991.47 $989.70 $1,002.60 $996.48 $1,013.48

Explanation / Answer

Formula to Calculate Market Price, YTM, Coupon Rate, Maturity:

Bond Price = Par Value

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