Description of Bond Questions

The Timberlake-Jackson Wardrobe Co. has 10 percent coupon bonds on the market with 20 years left to maturity. The bonds make annual payments. If the bond currently sells for $996.6, the YTM is percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Merton Enterprises has bonds on the market making annual payments, with 16 years to maturity, and selling for $1,056. At this price, the bonds yield 6.4 percent. The coupon rate on the Merton's bonds is percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Brittany Co. issued 14-year bonds one year ago at a coupon rate of 9.25 percent. The bonds make semiannual payments. If the YTM on these bonds is 8 percent, the current bond price is $ . (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Night Hawk Co. issued 16-year bonds 2 years ago at a coupon rate of 7.5 percent. The bonds make semiannual payments. If these bonds currently sell for 96 percent of par value, the YTM is percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Young Corporation has bonds on the market with 20 years to maturity, a YTM of 8 percent, and a current price of $958. The bonds make semiannual payments. The coupon rate on these bonds must be percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)
If Treasury bills are currently paying 5 percent and the inflation rate is 2.5 percent, the approximate real rate of interest is percent. The exact real rate is percent. (Input answers as percents rounded to 2 decimal places, without the percent sign.)

Locate the Treasury bond in Figure 6.3 maturing in May 2016.

This is a bond. Its current yield is percent, and yield to maturity is percent. The bid-ask spread is . (Input answers as percents rounded to 2 decimal places, without the percent sign.)

Rate:9 Maturity Mo/Yr:Nov18 Bid:135:19 Asked:135:20 Chg: -5 Asked Yield:4.97
(here is the info in the Figure6.3)

Solution Summary

The solution explains some bond questions relating to calculation of YTM percent, coupon rate, current bond price and treasury bond yield