Hakan ERTAŞ
1.
Tiger’s bonds have 10 years remaining to maturity. Interest is paid annually, the
bonds have a $1,000 par value, and the coupon interest rate is 8 percent. The bonds
have a yield to maturity of 9 %. What’s the current market price of these bonds?
PV= 80.PVAF(10,%9) + 1000.PVIF(10,%9) = -935,83
2.
Iron Corporation’s bond will mature in 10 years. The bonds have a face value of
$1,000 and an 8% coupon rate, paid semiannually. The price of the bonds is
$1,100. The bonds are callable in 5 years at a call price of $1,050. What is the
yield to maturity? What is the YTC?
YTM
1100 = 40.PVAF(20, i ) + 1000.PVIF ( 20,i) = 3,31 , YTM = 3,31x2 = 6,62
YTC
1100 = 40.PVAF(10,i) + 1050.PVIF (10,i ) = 3,24 , YTC = 3,24x2 = 6,48
3.
Nuns Corporation has issued bonds that have a 9% coupon rate, payable
semiannually. The bonds mature in 8 years, have a face value of $1,000, and a
yield to maturity of 8.5%. What is the price of the bonds?
PV = 45.PVIF( 16, 4.25) + 1000.(16, 4.25) = 1028,60
4.
A bond that matures in 10 years sells for $985. The bond has a face value of