Problem 1: Bond prices. SOS, Inc., has 8.00% coupon bonds on the market that have...

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Problem 1: Bond prices. SOS, Inc., has 8.00% coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 12.00%, what is the current bond price? The current bond price is $ 1. Points: 10 Problem 2: Bond Yields. Leeland Co. has 8.50% coupon bonds on the market with 5 years left to maturity. The bonds make annual payments. If the bond currently sells for $ 946.65 , what is its YTM? Its YTM is %. 2. Points: 10 Problem 3: Coupon Rates. Gramme Enterprises has bonds on the market making annual payments, with 15 years to maturity, and selling for $ 1,400.00. At this price, the bonds yield 6.00%. What must the coupon rate be on Gramme's bonds? The coupon rate is %. 3. Points: 10 % Problem 4: Bond Yields. Slurpy Corp. issued 20-year bonds 5 years ago at a coupon rate of 10.00%. The bonds make semiannual payments. If these bonds currently sell for 95.00% of par value. What is the YTM? The YTM is 4. Points: 10 Problem 5: Calculating Real Rates of Return. If Treasury bills are currently paying 3.75% and the inflation rate is 2.00%, what is the exact (do not ignore cross-product terms) real rate of interest? The exact real rate of interest is _%. (You will still round to two decimal places.) 5. Points: 10

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