A bond that has a face value of $2,500 and coupon rate of 2.50% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 2.75% compounded semi-annually.

Crazy Racoon Fur Trading Company issued a 20-year bond on May 15, 2018 with a 6.00% coupon. The bond pays interest semi-annually (5/15 and 11/15) with no special covenants (puts, calls, etc.). The bond will pay off at par (100.00%) or face value at maturity. You decide to purchase the bond and the trade is going to settle on August 30, 2020. On that date.... a. What is the price of the bond if the yield to maturity is 6.00%? b. What is the price of the bond if the yield to maturity increases to 7.00%? c. What is the price of the bond if the yield to maturity falls to 5.00%? Settlement date 08/30/20 Maturity date 05/15/22 Annual coupon rate 6.000% Yield to maturity 6.000% Redemption value as % of par valu 100.00 Number of coupons per year 2 BOND PRICE CALCULATOR $1,000.00 $1,000.00 CORRECT! $981.19 $962.89

On February 9, 2015, Hunter-Gratzner, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $42.  We will assume that the 2022 coupon has just been redeemed.    Initially (in 2015), the bond was sold at the premium price of $1,037. On February 9, 2022, this bond was selling for $972. The market rate of interest for a riskless corporate bond, of this maturity (i.e., a U.S. Treasury security), was 1.75% on February 9, 2015, which reflected market expectations about future rates of inflation. The market rate of interest for a riskless corporate bond, of this maturity (i.e., a U.S. Treasury security), was 2.05% on February 9, 2022, which reflects market expectations about future rates of inflation. Question: What was the yield to maturity for this bond on February 9, 2015?  [To 2 decimal places.]