solution

1. What is the price of a bond with a coupon rate of 4%, payable semi-annually, a face value of $1000, 6 years to maturity, and a yield to maturity of 4.2%?

Enter your response below. Enter your answer to 2 DECIMAL PLACES.

2. What are the annual coupon payments on a $1,000 face value bond with a current yield of 4% and a price of $960.00?

Enter your response below. Enter your answer to 2 DECIMAL PLACES.

3. Consider the following $1,000 face value bond which makes semi-annual coupon payments,

Bond	CIBC
Coupon rate	8.5%
Price	106.29
Maturity	December 1, 2030
Settlement Date	January 3, 2019

What is the total price you would pay for this bond? Enter your answer rounded to two decimal places.

4. What is the price of the bond that has a coupon rate of 3.7%, a yield to maturity of 4.1%, a face value of $1000, and 15 years to maturity? The coupon payments are annual.

Enter your response below. Enter your answer to rounded 2 DECIMAL PLACES.

5. Consider the following bond where the coupons are paid annually,

Bond	Scotiabank
Price	$1091.00
YTM	9%
Years to maturity	9 years

What is the coupon rate of this bond? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES.

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6. A two-year Treasury bill offers a 4.9% yield to maturity. The market’s concensus forecast is that one-year T-bills will offer 5.3% next year. What is the current yield on a 1-year T-bill if the expectations hypothesis holds? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Enter your response below. Enter your answer to 2 DECIMAL PLACES.

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