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