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Company A’s bond has a current price of $950, a par value of $1,000, and matures in 30 years. If interest is paid semi-annually and the bond is priced to yield 8%, what is the bond’s annual coupon rate? 2. Company B’s bond has a 8% coupon rate (with interest paid semi-annually), a par value of $1,000, and matures in 15 years. If the bond is priced to yield 5%, what is the bond’s current price? 3. Company C’s bond has an 6% coupon rate (semi-annual interest), a maturity value of $1,000, matures in 10 years, and a current price of $1,200. What is the bond’s yield-to-maturity? 4. A 30-year, $1,000 par value bond has an 8% annual coupon rate (with interest paid semi-annually). The bond currently sells for $900. If the yield to maturity remains at its current rate, what will the price be 10 years from now?
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