Interest Rate, YTM, Accrued Interest and Treasury Bond Yield

See attached file for clarity.

Young Corporation has bonds on the market with 19 years to maturity, a YTM of 6.4 percent, and a current price of $1,519. 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.)

Using Bond Quotes
Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000, and the current date is April 15, 2008. (Input answers as percents rounded to 2 decimal places, without the percent sign.)

Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s)
IOU (IOU) 7.425 Apr 15, 2016 873.1 ?? 1,827

The yield to maturity of the bond is percent.
The current yield is percent.

Nominal and Real Returns
An investment offers a 14.5 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 5.5 percent. Therefore, Bill believes the inflation rate will be percent over the next year. (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Accrued Interest
You purchase a bond with an invoice price of $1,070. The bond has a coupon rate of 4.6 percent, semiannual coupons and there are 2 months to the next coupon date. The clean price of the bond is $ . (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

In the table, find the Treasury bond that matures in May 2029. Assume that it is currently May 2008. What is the yield to maturity for this bond? (Input answer as a percent rounded to 2 decimal places, without the percent sign.)

Rate Maturity Mo/Yr Bid Asked Chg Ask Yld
?? May 15 106:13 106:17 +2 4.96
8.875 May 29 123:19 123:22 +4 ??
5.375 May 33 ?? ?? +3 6.48

Lester purchases a 30-year Treasurybond today. This bond is selling at par ($1,000) and has a coupon rate andyield to maturity of 7% (the bond pays interest annually). Now suppose that next week, a number of economic events occur which raises the rate of inflation. As a result the market rate of interest rises from 7% to 8%

A 1-year Corporate bond is issued with a face value of $100,000, paying interest of $2,500 semi-annually.
If market yields decrease shortly after the T-bond is issued, what happens to the bond's:
Price
Coupon Rate
Yield to Maturity

See attached file for full problem description.
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A 10-year 12 percent semiannual coupon bond, with a par value of $1,000, may be called in 4
years at a call price of $1,060. The bond sells for $1,100. (Assume that the bond has just been
issued),
a. What is the bond's yield to m

Suppose the annual yield on a 2-year Treasurybond is 4.5%, while that on a 1-year bond is 3%. k* (=real risk-free rate of interest) is 1 percent, and the maturity risk premium is zero.
a. Using the expectations theory, forecast the interest rate on a 1-year bond during the second year. (Hint: Under the expectations theory, t

Each of the bonds shown in the following table pays interest annually.
Bond A $1,000 Coupon interest rate 9% Years to maturity 8 Current Value $820
Bond B $1,000 Coupon interest rate 12% Years to maturity 16 Current Value $1,000
Bond C $500 Coupon interest rate 12% Years to maturity 12 Current Value $560
Bond D $1,000 Cou

4. Bond Pricing. A 6-year Circular File bond pays interest of $80 annually and sells for $950. What is its coupon rate, current yield, andyield to maturity?
5. Bond Pricing. If Circular File (see question 4) wants to issue a new 6-year bond at face value, what coupon rate must the bond offer?
6. BondYields. An AT&T

1. Assumed that the Financial Management Corporation's $1,000 par-value bond had a 5.700% coupon, matured on May 15, 2020, had a current price quote of 97.708, and had a yield to maturity of 6.034%. Given this information, answer the following questions:
A. What was the dollar price of the bond?
B. What is the bonds curren

Which of the following is most correct?
a. The yield on a 2 year corporate bond will always exceed the yield on a 2 year treasurybond.
b. The yield on a 3 year corporate bond will always exceed the yield on a 2 year corporate bond.
c. The yield on a 3 year treasurybond will always exceed the year on a 2 year treasurybond