1) A $1,000 Treasury bond matures in 13.5 years, pays interest semiannually, and carries a coupon rate of 3.53 percent. What is the price of this bond if the discount rate is 4 percent?

2) North & South RR bonds bear a coupon rate of 5.5 percent, payable annually. The bonds mature in 6.5 years, sell at par, and have a $1,000 face value. What is the yield to maturity?

3) A project is expected to produce cash flows of $12,800, $15,900, and $18,000 over the next 3 years, respectively. After 3 years, the project will be discontinued. What is this project worth today at a discount rate of 12.5 percent?

4) Beatrice is investing $5,000 in an account that pays 4 percent simple interest. How much more could she have earned over a period of 10 years if the interest had compounded annually?