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Saved German bonds pay interest annually, even though most U.S. corporate bonds pay interest semiannually. Assume that you are pricing a German bond with a par value of 1,000, 25 years to maturity, and a coupon rate of 7.5 percent paid annually. If the yield to maturity is 8.6 percent, what is the current price of the bond? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) Price Assume that Japanese bonds pay interest annually. Further, assume there is a Japanese bond outstanding that sells for 91 percent of its 100,000 par value. The bond has a coupon rate of 5.8 percent and matures in 20 years. What is the yield to maturity of this bond? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturity % Asssume the following about your investment in IBM. You own shares that had a total return last year of 10.5 percent. If the inflation rate last year was 4.5 percent, what was your real return? Be specific. Do not use the "approximation" formula. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 54.25.) Real return % IBM has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.2 percent of par. a. What is the current yield on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the YTM? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the effective annual yield? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Current yield b. YTM c. Effective annual yield % 1% % Ford Corporation offers a 10.0 percent coupon bond with semiannual payments and a yield to maturity of 11.00 percent. The bonds mature in 9 years. What is the market price of a $1,000 face value bond? $943.77 $1,562.30 $1,506.07 $1,381.47 $1,076.69

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