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Utah State UniversityFINANCE 3200 1) Page Enterprises has bonds on the market making annual payments, with nine years to maturity, and selling for $948

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Utah State UniversityFINANCE 3200

1) Page Enterprises has bonds on the market making annual payments, with nine years to maturity, and selling for $948. At this price, the bonds yield 5.9 percent. What must the coupon rate be on the bonds?

2)Stone Sour Corp. issued 20-year bonds 2 years ago at a coupon rate of 7.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?

3) Martin Software has 9.2 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 106.8 percent of par. What is the current yield on the bonds?

1. What is the effective annual yield?

2. What is the YTM?

3. What is the effective annual yield?