# Price of the Bond Assignment | Homework For You

Suppose you purchase a 20-year treasury bond with a 6% annual coupon ten years ago at face value. Today the bond’s yield to maturity has risen to 8%.

If you sell this bond now (10 years to maturity), at what price can you sell your bond?

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The Sisyphean Company has a bond outstanding with a face value of \$1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 6% and that the coupon payments are to be made semiannually. The yield to maturity of this bond is 8% .

How much will each semiannual coupon payment be?

 A. 60 B. 40 C. 80 D. 30

Consider the following probability distribution of returns for Alpha Corporation:

 Current Stock Price (\$) Stock Price in One Year (\$) Return R ProbabilityProb(R) \$35 40% 25% \$25 \$25 0% 50% \$20 -20% 25%

The standard deviation of the return on Alpha Corporation is closest to:

 A. 21.8% B. 21.5% C. 22.4% D. 19.0%

The Sisyphean Company has a bond outstanding with a face value of \$1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 6% and that the coupon payments are to be made semiannually. The yield to maturity of this bond is 8%