Billabong International Ltd issued a 5-year bond 1 year ago with a coupon of 8 per cent and a face value of $1000. The bond pays interest semi-annually. If the yield to maturity on this bond is 9 per cent, what is the price of the bond?
Exercise : Bond Valuation [On-line Exercise} Question 1 Calculate the price of a 5-year bond that has a coupon of 6.5 per cent and pars annualinterest. The current rnarltet rate is 5.?5 per cent. Question 1 Billabong Australia issued a 5-year bond 1 year ago with a coupon of 3 per cent. The bondpays interest semi-annuaiiy. If the yield to maturity on this bond is 9 per cent, what is theprice of the bond? Question 3 Westpac has a 3-year bond outstanding that pays a 125 per cent coupon and is currentlypriced at $913.83. What is the yield to maturity of this bond? Assume annual couponpayments. Question it Weaﬁumers has. a [0-year bond that is prioed at 5] 100.00. It has a coupon ofE percentpaid semiannuelly. What is the yield to maturity on this bond? Question 5 Highland Corp. a US compa nir. has a 5-year bond whose yield to maturity is 6.5 per cent.The bond has no coupon payments. What is the price oi this zero coupon bond?