What is current price of the bond

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1) Sam owns a $1000 par value corporate bond with 10 years to maturity and 5% coupon rate. If the current interest rate is 10%, what is the current price of the bond.

2) Calculate the current price of a 3-year semi-annual bond with 5% coupon rate and 6% market discount rate. Assume par is $1000.

3) A bond that was first issues exactly two years ago today had an original maturity of 17 years, a coupon rate of 7.5%, and was issued with the promise to return the face value of $1000 at maturity. Now, two years later, the current interest rate is 10%. Calculate the price of the bond now.

4) Calculate the Yield-to-Maturity (YTM) of a 3-year semi-annual bond with 5% coupon rate, which is selling for $951.90 currently?

Reference no: EM131977528

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