I have 6 Financial question i need answered
I have 6 Financial question i need answered. Questions are attached.
ATTACHMENT PREVIEW Download attachmentChapter 4 QuesTons and Problems8.Coupon Rates. Volbeat CorporaTon has bonds on the market with 10.5 years to maturity, a Y±Mof 8.4 percent, and a current price of $945. ±he bonds make semiannual payments. What must thecoupon rate be on the bonds?17.Interest Rate Risk. Bond J has a coupon rate of 4 percent. Bond S has a coupon rate of 14percent. Both bonds have 10 years to maturity, make semiannual payments, and have a Y±M of 8percent. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?What if rates suddenly fall by 2 percent instead? What does this problem tell you about the interest raterisk of lower-coupon bonds?18.Bond Yields. PK SoFware has 7.5 percent coupon bonds on the market with 22 years to maturity.±he bonds make semiannual payments and currently sell for 97 percent of par. What is the current yieldon PK’s bonds? ±he Y±M? ±he e²ecTve annual yield?Chapter 5 QuesTon and Problems1.InterpreTng Bond Yields. Is the yield to maturity on a bond the same thing as the requiredreturn? Is Y±M the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par.±wo years from now, the required return on the same bond is 8 percent. What is the coupon rate on thebond now? ±he Y±M?4.Bond Yields. ±he ±imberlake-Jackson Wardrobe Co. has 7 percent coupon bonds on the marketwith nine years leF to maturity. ±he bonds make annual payments. If the bond currently sells for$1,038.50, what is its Y±M?12.Nominal versus Real Returns. Say you own an asset that had a total return last year of 15percent. If the in³aTon rate last year was 2.5 percent, what was your real return?
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