27) Bonds issued by Fairfax Mechanical were priced at 993.39 dollars six months ago and are...

27) Bonds issued by Fairfax Mechanical were priced at 993.39 dollars six months ago and are priced at 978.2 dollars today. The bonds have a face value of 1,000 dollars, pay semi-annual coupons, and just made a coupon payment. The bonds had a percentage return over the past six months (from 6 months ago to today) of 6.5 percent. What is the coupon rate of the bonds? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

31

Bonds issued by Oxygen Optimization were priced at 891.76 dollars 6 months ago. The bonds pay semi-annual coupons, have a coupon rate of 9.56 percent, just made a coupon payment, and have a face value of 1,000 dollars. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -3.41 percent, then what is the current yield of the bonds today? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Question 32

Bonds issued by Fairfax Paint have a par value of 1000 dollars, were priced at 856.92 dollars six months ago, and are priced at 783.58 today. The bonds pay semi-annual coupons and just made a coupon payment. If the bonds had a percentage return over the past 6 months (from 6 months ago to today) of -2.35 percent, then what was the current yield of the bonds 6 months ago? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Expert Solution

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27) Bonds issued by Fairfax Mechanical were priced at 993.39 dollars six months ago and are...

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