Finance MBA assistance for bonds

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 yearsOne 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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