8. Alexander purchases a newly issued 5 year bond priced at $950 with par value...
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8. Alexander purchases a newly issued 5 year bond priced at $950 with par value of $1000. It pays $100 interest yearly. What are the coupon rate, the current yield and the yield to maturity? a. b. Using the yield to maturity from part a, what would be the price of similar 5 year zero coupon bond? 9. What is the price of a bond with a yield to maturity of 7%, coupon rate of 5%, 9 years to maturity and a $1,000 face value? 10. Now suppose you purchase a newly issued 30 year bond priced at $450 with par value of $1000. What are the coupon rate, the current yield and the yield to maturity? 11. Suppose you buy a 6% coupon bond for $850 on January 1st. You sell it for $875 on December 31st. What is the rate of return for you
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