1. A $7000 bond bearing interest at 7% payable semi-annually matures in 8 years. If it is bought to yield 5.5% compounded semi-annually, what is the purchase price of the bond? 2. A company issues 3000 bond certificates with a face value of $1000 each that mature in 10 years. Interest on the bonds is 4% payable annually. What is the issue price of the bonds if the bonds are sold to yield 5% compounded quarterly? 3. A 10000$, 3% bond with quarterly interest coupons redeemable at par in 10 years is purchased to yield at 4.5% compounded quarterly. (i) What is the premium or discount? (ii) What is the purchase price? 4. What is the difference between stocks and bonds? 5. A $20000, 7.5% bond with semi-annual coupons redeemable at par in 10 years is purchased at 102.5. What is the approximate yield rate? 6. What are the three main types of bonds? 7. Can you describe the relationship between bond prices and interest rates? 8. Please describe the impact of yield changes 9. Define bond indexes and how they are used in the securities industry 10. A $1000, 9.5% bond with semi-annual interest coupons redeemable at par in 20 years is bought to yield 8% compounded semi-annually. Determine: (i) the premium or discount (ii) the purchase price