1. A 1S-year, 5 percent coupon bond pays interest annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield to maturity increases to 5.5 percent from the current rate of 4.5 percent? 1) What is the bond price when the current rate is 4.5 percent? (5") 2) What is the bond price when the market yield to maturity decreases to 5.5 percent? 3) What is the percentage change in the price of this bond? (5) Technical Sales, Inc. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make semiannual payments and currently sell for 95 percent of par 1) What is the market yield to maturity (YTM, normally APR)? (5") 2. 2) What is the effective annual yield? (5") Page 1 of 4