Need help ASAP on my practice test. Please show work so I can follow along!
1. Determine the annual return on a 15-year, $25,000 discount bond that you originally purchased for $13,200 and
sold 10 years later for $22,500.
2. Do both of the following
a) A $80,000 coupon bond with a $4,225 coupon payment every year has a coupon rate of?
b) With an interest rate of 5.25 percent, the present value of $15,000 in four years is?
3. Determine the current yield AND the approximate yield to maturity for a 6.32%, $500,000 coupon bond selling
for $512,600 and maturing in 6 years.
4. Determine the market price of a 15-year, 4.33%, $225,000 coupon bond when the market interest rate is 4.05%.
