1. CEPS Group offers 5.75 percent coupon bonds with semiannual payments and a yield to maturity of 5.89 percent compounded semiannually. The bonds mature in 4 years. What is the market price per bond...

1. CEPS Group offers 5.75 percent coupon bonds with semiannual payments and a yield to maturity of 5.89 percent compounded semiannually. The bonds mature in 4 years. What is the
market price per bond if the face value is $1,000?

2. You are purchasing a 19.5-year, zero-coupon bond. The yield to maturity is 6.51 percent compound semi-annually and the face value is $1,000. What is the current market price?

3. CEPS Group has bonds outstanding with a 6.61 percent nominal yield to maturity. The current rate of inflation is 5.2 percent. What is the real rate of return on these bonds?

4. The bonds of CEPS Group sells for OMR 1,191.53. The yield to maturity is 12 percent and the maturity date is 9 years from today. What is the annual coupon rate of this bond if the face value is $1,000?

5. CEPS Group just paid an annual dividend of OMR 1.45 per share. Today, the company announced that future dividends will be increasing by 3.25 percent annually. If you require a 15 percent rate of return, how much are you willing to pay to purchase one share of this stock today?