Can you please help me with the following questions?
Question 1: A bond has a coupon rate of 8.5% and 18 years until maturity. If the yield to maturity is 6.7%, what is the price of the bond?
Question 2: A bond sells for $864.50 and has a coupon rate of 6%. If the bond has 16 years until maturity, what is the yield to maturity of the bond?
Question 3: Sealord Fisheries issues zero coupon bonds on the market at a price of $150 per bond. Each bond has a face value of $1,000 payable at maturity in 20 years. What is the yield to maturity for these bonds?
Question 4: If instead the Sealord Fisheries zero coupon bonds referred to above in question # 8, are callable in 10 years at a call price of $475, what is their yield to call?
Question 5: Dunbar Corp. has bonds on the market with 11.5 years to maturity, a Yield to Maturity of 7.5 percent, and a current price of $1,084. What must the coupon rate be on Dunbar's bonds?
Question 6: A zero coupon bond with a 9%Yield To Maturity has 15 years to maturity. Two years later, the price of the bond remains the same. What going on here?
Question 7: Bond X is a premium bond with an 8% coupon, a Yield to Maturity of 6 percent, and 15 years to maturity. Bond Y is a discount bond with 8% coupon, a Yield to Maturity of 10 %, and also 15 years to maturity. If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 5 years? In 10 years? In 14 years? In 15 Years? What's going on here?
Question 8: Bond J is a 4% coupon bond. Bonk K is a 10% coupon bond. Both bonds have 10 years to maturity and have a Yield To Maturity of 7%. If interest rates suddenly rise by 2%, what is the percentage price change of these bonds? What if rates suddenly fall by 2% instead? What does this problem tell you about the interest rate risk of lower-coupon bonds?
Question 9: A bond with a coupon rate of 7% sells at a yield to maturity of 8%. If the bond matures in 13 years, what is the Macaulay duration of the bond? What is the modified duration?