1. A 20-year bond has a coupon rate of 5% (pays $50 per year = PMT). At maturity, it pays $1,000 (FV). If current interest rates have risen to 6% (I%), what is the appropriate price of this bond (PV)

2. What is the current yield on the bond in #36?

3. If the bond in #36 was callable in 5 years at $1,050 (105% of par), what is the yield to call given the price you calculated in #36?

4. Your friend, an Edward Jones broker, has suggested you buy a 30-year corporate bond with a 5% coupon. If interest rates on similar bonds are now 6%, what price should you pay for this bond?