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Oak Bay Software has 10.6% coupon bonds on the market with 18 years to maturity. The...

Oak Bay Software has 10.6% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 108.2% of par.

What is the YTM? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

YTM               %

What is the effective annual yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Effective annual yield               %

Bond J is a 4.7% coupon bond. Bond K is a 10.7% coupon bond. Both bonds have 15 years to maturity, make semiannual payments and have a YTM of 7.7%. (Do not round intermediate calculations. Negative answers should be indicated by a minus sign. Round the final answers to 2 decimal places.)

If interest rates suddenly rise by 2%, what is the percentage price change of these bonds?

Percentage change in price of Bond J %
Percentage change in price of Bond K %

What if rates suddenly fall by 2% instead?

Percentage change in price of Bond J %
Percentage change in price of Bond K %

Colwood Corp. has 8.9% coupon bonds making annual payments with a YTM of 8.1%, current market value of $1,060.10.

How many years do these bonds have left until they mature? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Years left to maturity               years

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