1. A 12% coupon bond that matures in 6 years is selling for $1,150. It pays interest semiannually. What is the bond's: a. Current yield? b. YTM? c. Why is the YTM less than the coupon rate of interest? 2. A 10% coupon bond that pays interest semiannually and matures in 9 years is selling for $915. What is the bond's: a. Current yield? b. YTM? c. Why is the YTM more than the coupon rate of interest? 3. If yield to maturities of comparable risk-classed bonds are 9%, what is the approximate market price of a 11% coupon bond with semiannual payments that matures in 6 years? What if the bond were a zero coupon bond with no coupon payments? 4. What if the bond in Question 3 matures in 26 years? What if the bond were a zero coupon bond with no coupon payments? 5. Explain what is going on in Questions 3 and 4. Why are the answers different? 6. Benny Hill wants to invest $35,000 in bonds. He can buy a corporate bond with a yield of 8% or a municipal bond with a yield of 6%. Benny is in the 31% marginal tax bracket. Which should he select