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1. Harrison Co. issued 14-year bonds one year ago at a coupon rate of 7.4 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.4 percent, what is the current dollar price assuming a $1,000 par value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)2. Stein Co. issued 17-year bonds two years ago at a coupon rate of 10.1 percent. The bonds make semiannual payments. If these bonds currently sell for 97 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)3. An investment offers a total return of 12 percent over the coming year. Janet Jello thinks the total real return on this investment will be only 7.8 percent. What does Janet believe the inflation rate will be over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 4. You find a zero coupon bond with a par value of $10,000 and 30 years to maturity. The yield to maturity on this bond is 5.2 percent. Assume semiannual compounding periods. What is the price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)5. Union Local School District has bonds outstanding with a coupon rate of 3.2 percent paid semiannually and 21 years to maturity. The yield to maturity on these bonds is 3.5 percent and the bonds have a par value of $5,000. What is the price of the bonds? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)6. You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000.RateMaturityMo/YrBidAskedChgAskYld??May 18103.5362103.8235+.32042.1805.850May 23104.1762104.3850+.4513??6.125May 36????+.68213.870In the above table, find the Treasury bond that matures in May 2018. What is the coupon rate for this bond? 7 . You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000.Company(Ticker)CouponMaturityLastPriceLastYieldEST $ Vol(000’s)Xenon, Inc. (XIC)5.600Jan 15, 202494.207??57,364Kenny Corp. (KCC)7.140Jan 15, 2021??6.0648,943Williams Co. (WICO)??Jan 15, 202894.7556.8843,804What is the yield to maturity for the bond issued by Xenon, Inc.? 8. Bond P is a premium Bond with a coupon rate of 9.9 percent. Bond D is a discount Bond with a coupon rate of 5.9 percent. Both Bonds make annual payments, have a YTM of 7.9 percent, a par value of $1,000, and have fourteen years to maturity. What is the current yield for Bond P? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Current yield % What is the current yield for Bond D? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Current yield % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Capital gains yield % If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond D? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Capital gains yield %9. Both Bond Bill and Bond Ted have 12.8 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 7 years to maturity, whereas Bond Ted has 24 years to maturity. Both bonds have a par value of 1,000. If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentagechange in priceBond Bill %Bond Ted %If rates were to suddenly fall by 3 percent instead, what would be the percentage change in the price of these bonds? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentagechange in priceBond Bill %Bond Ted %
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