What is the coupon rate and current yield

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Question - A 30 year Treasury Bond is issues with par value of $1,000, paying interest of $80 per year. If market yields increase shortly after the T bond is issues, what happens to the bond's:

-Coupon rate

-Price

-Yield to maturity

-Current yield

-A bond with a par value of $1,000 has a current yield of 7.5% and a coupon rate of 8%. What is the bond's price?

-One bond has a coupon rate of 8%, another a coupon rate of 12%. Both bonds have 10 year maturities and sell at a yield to maturity at 10%. If the yield to maturity next year are still 10%, what is the rate of return on each bond? Does the higher coupon bond give a higher rate of return?

-A 6 year Circular File Bond pays interest of $80 annually and sells for $950. What is the coupon rate, current yield, and yield to maturity?

-A General Motors Bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 9%.

-What interest payments do bond holders receive each year?

-At what price does the bond sell (Assume annual interest payments)

-What happens to the bond price if the yield to maturity falls to 7%?

Reference no: EM133059190

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