Question 1: You have an opportunity to buy a $1,000 bond which matures in 10 years. The bond pays $30 every six months. The current market interest rate is 8%. What is the most you would be willing to pay for this bond?
Question 2: Suppose a Swedish krona sells for $0.1625 and a British pound sells for $1.6523. What is the exchange rate (cross rate) of the Swedish krona to the British pound? That is, how many Swedish kronas are equal to a British pound?
Question 3: Gray House is issuing bonds paying $105 annually that will mature fifteen years from today. The bond is currently selling for $980.
Calculate:
a) Coupon Rate
b) Current Yield
c) Yield To Maturity