Vermex bonds currently sell for 975 Rupees which has got 7 years’ maturity with a 12 percent annual coupon and have a per value of 1000 Rupees. What is their YTM? What is their current yield.
Q.1
A 6-year bond with 1000 Rupees par value pays 80 Rupees interest annually and sells for 950 Rupees. What is the coupon rate, current yield and yield to maturity?
Q.2
A firm sells bonds with a par value of 1000 Rupees, carry a 8% coupon rate, with a maturity period of 9 years. The bond sells at a yield to maturity of 9%.
- a) What is the interest payment you should receive each year?
- b) What is the selling price of the bond?
Q.3
Pakistan bank issues a 10-year treasury bond at 12% coupon with the par value of 1000 Rupees. If the market yield increases shortly afterwards, what happens to the following parameters:
- a) coupon rate
- b) price
- c) current yield
- d) yield to maturity.
Q.4
ABC corporation has issued 12 percent annual coupon 1000 Rupees par
Q.5
Vermex bonds currently sell for 975 Rupees which has got 7 years’ maturity with a 12 percent annual coupon and have a per value of 1000 Rupees. What is their YTM? What is their current yield.
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