1. A $1,000 bond has a coupon of 4% ($40 coupon payments) and matures after 10 years. a. What would be the bond's price if comparable debt yields 6%? b. What would be the price if the comparable debt yields 6% and the bond matures after 5 years? c. What are the current yields for a. and b. above? a. b. 2. Ten years ago, your grandmother purchased for you a 20-year $1,000 bond with a coupon rate of 12% ($120 dollar coupon payments). You now wish to sell the bond and read that comparable yields are 8%. What price should you receive for the bond? a. Your Price: 3. Your broker offers to sell you a AAA-rated bond for $1,200 with a coupon rate of 8% ($96 coupon payments) and a maturity of 8 years. Given that the interest rate on comparable debt is 6%, is your broker fairly pricing the bond? a. Value of the bond: b. Is his $1,200 a fair price