2. $1,151.20
tired
I don't feel like I'm getting the right numbers here, any help appreciated. Thanks
1. You are interested in investing in a five-year bond that pays a 7.41 percent coupon with interest to be received semiannually. Your required rate of return is 10.14 percent. What is the most you would be willing to pay for this bond?
2.Pullman Corp issued 10-year bonds four years ago with a coupon rate of 7.69 percent. At the time of issue, the bonds sold at par. Today bonds of similar risk and maturity must pay an annual coupon of 6.68 percent to sell at par value. Assuming semiannual coupon payments, what will be the current market price of the firm’s bonds?
3.Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 11.05 percent, what is the value of these bonds?
4.Rockinghouse Corp. plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $351.70. Assuming annual coupon payments, what is the yield to maturity on these bonds?
