Order Of Interest Rates and Bond Valuation
1. What is the annual yield of a 6-year, 6.4% semi-annual coupon-paying bond priced today at $1,190? Par is $1,000.
2. What is the annual yield of a 9-year, 4.1% annual coupon-paying bond priced today at $1,088? Par is $1,000.
3. Show the cash flows and prices for the following four bonds, each with a par value of $1,000 and paying interest semi-annually: