Question

1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and...

1) how much should you pay for a $1000 bond with 6% coupon, annual payments, and 16 years to maturity if the interested rate is 6%?
2) how much should you pay for a $1000 zero coupon bond with 5 years to maturity if the interest rate is 5%?
3) what is the rate of return for an investor who pays $1061 for a 3 year bond with an annual coupon payment of 6% and sells the bond 1 year later for $909? state the answer in percentages.
4) A bond is priced at $1,100 has 24 years remaining until maturity and has 7% coupon, paid semiannually. What is the amount of the next interest payment?
5) Rosita purchased a bond for $903 that had a 5% coupon and semiannual interest payments. She sold the bond after 6 months and earned a total return of 5.2% on this investment. At what price, did she sell the bond?
6) Two years ago a bond was issued at par with 10 years until maturity and a 4% annual coupon. If interest rates for that grade of bond are currently 9%, what will be the market price of this bond?

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