16. What is the Current Yield of a 10\% coupon bond with a PAR value of $1,000 and a current market
price of $900? (See the Module 2 Chapter 6 notes).
17. An investor purchases a $1,000 PAR value bond with an 8\% coupon for $950. Interest rates drop
over the next year. One year after his purchase, the investor sells the bond at PAR.
What is the HPR\%? What is the HPR in dollars?
18. What is the current market value of a 6\% coupon bond, with a PAR value of $10,000, paying a semi-
annual coupon, with 15 years to maturity, if current market yields on similarly rated bonds is 7\%.