FINANCE BOND HW

1. Page Enterprises has bonds on the market making annual payments, with eleven years to maturity, and selling for $958. At this price, the bonds yield 6.40 percent.

 

What must the coupon rate be on the bonds? (Round your answer to 2 decimal places. (e.g., 32.16))

 

2. Stone Sour Corp. issued 15-year bonds 2 years ago at a coupon rate of 9.10 percent. The bonds make semiannual payments. If these bonds currently sell for 103 percent of par value, what is the YTM? (Round your answer to 2 decimal places. (e.g., 32.16))

 

3.

Ponzi Corporation has bonds on the market with 19.5 years to maturity, a YTM of 8.00 percent, and a current price of $1,069. The bonds make semiannual payments.
What must the coupon rate be on these bonds? (Round your answer to 2 decimal places. (e.g., 32.16))

 

4. Both Bond Sam and Bond Dave have 9 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has four years to maturity, whereas Bond Dave has 15 years to maturity.

 

If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))

 

  Percentage change in price of Bond Sam$$ [removed]
 
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