Finance MBA assistance for bonds

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1. 

A bond for IBM maturing in 12 years and 3 months has quarterly coupon payments of $11.50.  If the current interest rate on this bond is 5.5% (yield to maturity), which of the following is true?

2. 

On a credit card that currently has a $7,500 balance and an interest rate of 14.99% (compounded monthly, charged on the outstanding balance at the end of each month), how long will it take to pay off the card if I make payments of $150 each month?

3. 

For a credit card with a balance of $7,500 and an interest rate of 14.99% (monthly compounding, charged on the outstanding balance each month), how much total interest will you pay over the repayment period if your payment each month is 150?

4. 

If you have a credit card with a balance of $7,500 and an interest rate of 14.99% (compounded monthly), what is the payoff amount (i.e. remaining principal amount) after 40 months of $150 payments?

5. 

What is the effective interest rate charged by Visa if the nominal rate is 21.99% and it is compounded daily.  Don’t use symbols and put your answer as a number with 2 decimal places – i.e. if your answer is 17.55%, enter 17.55 in the space provided, don’t put .1755.

6. 

What is the coupon rate for a bond that has semi-annual coupon payments, a yield to maturity of 6.549% ,  is priced at $899.67 and has 6 years to maturity?

7. 

What is the risk-free rate if a corporate bond yielding 6.9% has a Default Risk Premium of 2.4%, a Maturity Risk Premium of 3.1% and a Liquidity Premium of 0.2%?  Put your answer as a number with 2 decimals and no % symbol – i.e. 5.95% should be entered as 5.95, not .0595.

8. 

Calculate the real interest rate if the nominal rate is 9.5% and the inflation rate is 3.9%.

9. 

Calculate the percentage change in the price over the course of a year for a bond with semi-annual coupon payments based on the following information:
Initial YTM = 6.875%
Coupon Rate = 4.5%
Time to Maturity = 16 years

One year later:
YTM = 8.85%

10. 

 What is the yield on a zero-coupon bond that is priced at 486.55 if there are 20.5 years to maturity.  Assume semi-annual compounding.  For your answer, use a number with 2 decimal places and no % symbol – i.e. if your answer is 8.95%, enter 8.95, not .0895 as your answer.

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