Chapter 4: 8, 17, and 18
8. Coupon Rates. Volbeat Corporation has bonds on the market with 10.5 years to maturity, a YTM of 8.4
percent, and a current price of $945. The bonds make semiannual payments. What must the coupon rate
be on the bonds?
17. Interest Rate Risk. Bond J has a coupon rate of 4 percent. Bond S has a coupon rate of 14 percent.
Both bonds have 10 years to maturity, Plus
