Bond Valuation_examples

Bond Valuation_examples - 1 Coupon Rate Ponzi Corporation...

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1. Coupon Rate: Ponzi Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1 percent, and a current price of \$1,038. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Round your answer to 2 decimal places. (e.g., 32.16)) Coupon rate % 2. Bond Yield: A Japanese company has a bond outstanding that sells for 87 percent of its ¥100,000 par value. The bond has a coupon rate of 4.3 percent paid annually and matures in 18 years. What is the yield to maturity of this bond? (Round your answer to 2 decimal places. (e.g., 32.16)) Yield to maturity % 3. Bond Price: Ninja Co. issued 14-year bonds a year ago at a coupon rate of 6.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.2 percent, what is the current bond price? (Round your answer to 2 decimal places. (e.g., 32.16)) Current bond price \$ 4. Bond Maturity: Backwater Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.2 percent. The current yield on these bonds is 7.55 percent. How many years do these bonds have left until they mature?

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