A 9-year bond pays interest of 2770 semiannually has face


1. A 9-year bond pays interest of $27.70 semiannually, has a face value of $1,000, and is selling for $813.88. What are its annual coupon rate and yield to maturity?

2. What is the yield to maturity of a 9.3% semiannual coupon bond with a face value of $1,000 selling for $893.56 that matures in 9 years?

3. What is the price of a 3-year, 7.5% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 11.6% ?

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Financial Management: A 9-year bond pays interest of 2770 semiannually has face
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