$1.$ A bond has a $$1,000$ par value, $12$ years to maturity, and an $8\%$ annual coupon and sells for

$$980.$

a$.$ What is its yield to maturity $($YTM$)?$

b$.$ Assume that the yield to maturity remains constant for the next three years. What will the price

be $3$ years from today?

$2.$ Nesmith Corporation$$s outstanding bonds have a $$1,000$ par value, an $8\%$ semiannual coupon,

$14$ years to maturity, and an $11\%$ YTM$.$ What is the bond$$s price?

$3.$ You are considering a $10-$year, $$1,000$ par value bond. Its coupon rate is $8\%,$ and interest is paid

semiannually. If you require an $$effective$$ annual interest rate $($not a nominal rate$)$ of $7\mathrm{.}1225\%,$

how much should you be willing to pay for the bond?