The $1,000 face value bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today? The bond has a 8% coupon rate, with interest paid semi-annually, a maturity value of $1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price? The $1,000 face value bond has a coupon of 10% (paid semi-annually), matures in 4 years, and has current price of $1,140. What is the bond's yield to maturity? The bond has a current price of $800, a maturity value of $1,000, and matures in 5 years. If interest is paid semi-annually and the bond is priced to yield 8%, what is the bond's annual coupon rate?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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a) The $1,000 face value bond has a coupon rate of 6%, with interest paid semi-annually, and
matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today?
b) The bond has a 8% coupon rate, with interest paid semi-annually, a maturity value of
$1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current
price?
c) The $1,000 face value bond has a coupon of 10% (paid semi-annually), matures in 4 years,
and has current price of $1,140. What is the bond's yield to maturity?
d) The bond has a current price of $800, a maturity value of $1,000, and matures in 5 years.
If interest is paid semi-annually and the bond is priced to yield 8%, what is the bond's
annual coupon rate?
Transcribed Image Text:a) The $1,000 face value bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today? b) The bond has a 8% coupon rate, with interest paid semi-annually, a maturity value of $1,000, and matures in 5 years. If the bond is priced to yield 6%, what is the bond's current price? c) The $1,000 face value bond has a coupon of 10% (paid semi-annually), matures in 4 years, and has current price of $1,140. What is the bond's yield to maturity? d) The bond has a current price of $800, a maturity value of $1,000, and matures in 5 years. If interest is paid semi-annually and the bond is priced to yield 8%, what is the bond's annual coupon rate?
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