Home / Questions / Bond XYZ and bond ABC both pay annual coupons, mature in seven years, have a face value o
Bond XYZ and bond ABC both pay annual coupons, mature in seven years, have a face value of $1,000, and have the same yieldtomaturity. Bond XYZ has a coupon rate of 8.5 percent and is priced at $1,035.09. Bond ABC has a coupon rate of 6.4 percent. What is the price of bond ABC? 
XYZ 
ABC 

Coupons 
85 
64 

Period 
7 
7 

FV 
1000 
1000 

YTM 

Price 
1035.09 

Six years ago, Allen Corporation issued bonds that pay annual coupons, have a face value of $1,000, have an annual coupon rate of 8.6 percent, and are scheduled to mature in four years. One year ago, you bought one of those bonds for $998. The bond just paid a coupon. If the percentage return on your bond was 4.6 percent over the past year, what is the price of the bond today? 

Today, a bond has a coupon rate of 10.8 percent, par value of $1000, 13 years until maturity, YTM of 9.6 percent, and semiannual coupons with the next one due in six months. One year ago, the price of the bond was $1,075. What is the current yield of the bond today? 

Microhard has issued a bond with the following characteristics: 

Par: $1,000 

Time to maturity: 15 years 

Coupon rate: 11 percent 

Semiannual payments 

Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your final answersto 2 decimal places. (e.g., 32.16)): 





Price of the Bond 

a. 
11 percent 


b. 
13 percent 


c. 
9 percent 


Stone Sour Corp issued 20 year bonds 2 years ago at a 7.1% coupon rate. The bonds make semiannual payments 

If these bonds sell for 105% par value, what is the YTM? Work must be shown as a formula. 

Settlement Date 
1/1/2000 

Maturity Date 
1/1/2018 

Annual Coupon Rate 
7.10% 

Coupons/year 
2 

Face value (%of Par) 
100 

Bond Price (% of Par) 
105 

Rhiannon Corp. has bonds on the market with 15.5 years to maturity. 

The YTM is 6.2%, current price is $1039.00. The bonds make semi annual payments. 

What is the coupon rate? 

A Japanese company has a bond outstanding that sells for 96% of it's 100,000 yen par value. 

The bond has a coupon rate of 6.3% paid annually and matures in 19 years/ 

What is the YTM of this bond? 

An investment offers a 12% total return over the coming year. An investor thinks 

the total real return will only be 8%. What does the investor think the inflation rate will be 

over the next year? 
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