1. 7 years ago Eastern Corporation issued 20-year bonds that had a $1,000 face value, paid interest annually, and had a coupon rate of 8 percent. If the market rate of interest is 5.5 percent today, what is the current market price of an Eastern Corporation bond?

2. Ruth Hornsby is looking to invest in a three-year bond that makes semiannual coupon payments at a rate of 5.325 percent. If these bonds have a market price of $988.09, what yield to maturity and effective annual yield can she expect to earn?

3. Regatta Inc. has seven-year bonds outstanding that pay a 11.77 percent coupon rate. Investors buying these bonds today can expect to earn a yield to maturity of 9.41 percent. What is the current value of these bonds? Assume annual coupon payments.