Chapter 7 Exercices - Evening MBA Finance Chap 7 Problems...

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Evening MBA Finance Chap 7 Problems 3. *Bond Prices* Carpenter, Inc., has 8 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 9 percent, what is the current bond price? 4. *Bond Yields* Linebacker Co. has 7 percent coupon bonds on the market with nine years left to maturity. The bonds make annual payments. If the bond currently sells for $1,080, what is its YTM? 5. *Coupon Rates* Hawk Enterprises has bonds on the market making annual payments, with 16 years to maturity, and selling for $870. At this price, the bonds yield 7.5 percent. What must the coupon rate be on the bonds? 6. *Bond Prices* Cutler Co. issued 11-year bonds a year ago at a coupon rate of 7.8 percent. The bonds make semiannual payments. If the YTM on these bonds is 8.6 percent, what is the current bond price? 7. *Bond Yields* Ngata Corp. issued 12-year bonds 2 years ago at a coupon rate of 9.2 percent.
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