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A 10-year Circular File bond pays interest of $55 annually and sells for $984. What are its coupon rate and yield to maturity?** (Do not round intermediate calculations. Round “Coupon rate” to 1 decimal place and “Yield to maturity” to 2 decimal places.)**

Coupon rate | [removed] % |

Yield to maturity | [removed] % |

A 5-year Circular File bond pays interest of $50 annually and sells for $976. If Circular File wants to issue a new 5-year bond at face value, what coupon rate must the bond offer? **(Do not round intermediate calculations. Round your answer to 2 decimal places.)**

Coupon rate | [removed] % |

A bond has 8 years until maturity, a coupon rate of 5%, and sells for $1,065. |

a. | What is the current yield on the bond? (Round your answer to 2 decimal places.) |

Current yield | [removed] % |

b. | What is the yield to maturity? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |

Yield to maturity | [removed] % |

General Matterâ€™s outstanding bond issue has a coupon rate of 8.6%, and it sells at a yield to maturity of 7.75%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value? **(Round your answer to 2 decimal places.)**

Coupon rate | [removed] % |

Refer the table below: |

Maturity | Coupon | Bid Price | Asked Price | Asked Yield, % |

2012 May 15 | 1.375 | 101:05 | 101:06 | 0.78 |

2013 May 15 | 3.625 | 106:31 | 107:01 | 1.23 |

2014 May 15 | 4.75 | 111:22 | 111:23 | 1.70 |

2020 May 15 | 8.75 | 144:17 | 144:19 | 3.44 |

2025 Aug 15 | 6.875 | 133:07 | 133:11 | 3.94 |

2030 May 15 | 6.25 | 128:25 | 128:27 | 4.12 |

2040 May 15 | 4.375 | 100:28 | 100:29 | 4.32 |

What is the current yield of the 4.75% 2014 maturity bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |

Current yield | [removed] % |

One bond has a coupon rate of 5.4%, another a coupon rate of 8.2%. Both bonds have 13-year maturities and sell at a yield to maturity of 7.5%.

a. | If their yields to maturity next year are still 7.5%, what is the rate of return on each bond? (Do not round intermediate calculations. Round your answers to 1 decimal place.) |

Rate of Return | |

Bond 1 | [removed] % |

Bond 2 | [removed] % |

b. | Does the higher coupon bond give a higher rate of return? |

[removed]Yes[removed]No |

Fill in the table below for the following zero-coupon bonds. The face value of each bond is $1,000. **(Do not round intermediate calculations. Round “Yield to maturity” to 3 decimal places and rest of the answers to 2 decimal places.)**