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# Bonds:YTM, YTC, PV, value, current yield, capital gain yield

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Please calculate the attached problems and show all work:

1. Bond PV 1a
A coupon bond promises annual interest payments based on a face value of \$1,000 and a 9.00% coupon rate. The bond matures in 22 years. If the appropriate discount rate is 7.85%, what is the value of the bond?

2. Bond YTM 1a
A coupon bond with annual payments, a \$1,000 par value, a 10.40% coupon rate, and 14 years until maturity is selling for \$973.26. What is its yield to maturity?

3. Bond YTC 1
A coupon bond has annual payments based on a face value of \$1,000 and a coupon rate of 9.45%. The bond matures in 29 years and is selling for \$1,058.25. If the bond can be call by its issuer in 4 years at a 3% premium over par, what is its yield to call?

4. Bond PV 2
A coupon bond with semi-annual payments has a par value of \$1,000 and a coupon rate of 11.20%. The bond matures in 14.5 years. If similar bonds yield 12.60%, what is the bond's value?

5. Bond YTM 2
A bond that matures in 27 years pays interest every 6 months based on its \$1,000 face value and 8.30% coupon rate. If the bond's market value is \$1,073.62, what is its yield to maturity?

6. Bond YTC 2
What is the yield to call of a bond which can be called in five years at \$1,020 and has the following structure: semi-annual payments, 7.10% coupon rate, \$1,000 par value, remaining maturity 25 years, and market price \$968.64?

7. Current Yield 1
A bond selling for \$1,117.34 has a \$1,000 par value, an 8.10% coupon rate, annual payments, and a remaining maturity of 18 years. What is the bond's current yield?

8. Capital Gains Yield 1
A bond selling for \$1,117.34 has a \$1,000 par value, an 8.10% coupon rate, annual payments, and a remaining maturity of 18 years. If interest rates do not change over the next year, what will be the bond's capital gains yield?

9. Bond PV 1b
The appropriate yield on a 15-year bond with annual payments and a 9.20% coupon rate is 11.15%. What is the value of the bond?

10. Bond YTM 1b
What is the yield to maturity of a bond that currently sells for \$1,043.86, has a coupon rate of 7.90% (annual payments) and matures in 23 years?

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