Page Enterprises has bonds on the market making annual payment

1, Page Enterprises has bonds on the market
making annual payment, with nine years to maturity, and selling for $948. At
this price, the bonds yield 5.9 percent. What must the coupon rate be on the
bonds?

2, Bond J is a 3 percent coupon bond. Bond
K is a 9 percent coupon bond. Both bonds have 15 year to maturity, make
semiannual payments, and have a YTM of 6 percent. If interest rates suddenly
rise by 2 percent, what is the percentage price change of these bonds? What if
rates suddenly fall by 2 percent instead? What does this problem tell you about
the interest rate risk of lower-coupon bonds?

3, Martin software has 9.2 percent coupon
bonds on the market with 18 years to maturity. The bonds make semiannual
payments and currently sell for 106.8 percent of par. What is the current yield
on the bonds? The YTM? The effective annual yield?

4, 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?

5, You’ve just found a 10 percent coupon
bond on the market that sells for par value. What is the maturity on this bond?