Unformatted text preview: bonds would be 2 years from now? In 5 Years? In 7 years? In 10 years? In 13 years? Illustrate your answers by graphing bond prices versus time to maturity. 6. Banglalink has 7.6% coupon bonds on the market with 10 years to maturity. The bonds make semiannual payments and currently sell for 92.5% of par. What is current yield on the bonds? The YTM? The effective annual yield? 7. North South University wants to issue new 15year bonds for some much needed expansion projects. The company currently has 8% coupon bonds in the market that sell for TK 1050, make semiannual payments and mature in 15 years. What coupon rate should the university set on its new bonds if it wants to sell them at par? 8. Suppose, you purchase a bond with an invoice price of Tk 1100. The bond has a coupon rate of 9.2% and there are four months to the next semiannual coupon date. What is the clean price of the bond? Due Date: 13 Due Date: 13 th th November, 2011 (Sunday) November, 2011 (Sunday)...
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 Spring '14
 Interest, Interest Rate, real rate, exact real rate

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