1. A bond has a coupon rate of 7.1 percent and 7 years until maturity. If the yield to maturity is 7.3 percent, what is the price of the bond?

2. A bond with 15 years until maturity has a coupon rate of 8.6 percent and a yield to maturity of 7.8 percent. What is the price of the bond?

3. A bond sells for $925.36 and has a coupon rate of 7.60 percent. If the bond has 20 years until maturity, what is the yield to maturity of the bond?

4. May Industries has a bond outstanding that sells for $898. The bond has a coupon rate of 7.40 percent and 12 years until maturity. What is the yield to maturity of the bond?

5. Ghost Rider Corporation has bonds on the market with 12 years to maturity, a YTM of 5.9 percent, and a current price of $920. What must the coupon rate be on the companys bonds?

6. Great Wall Pizzeria issued 11-year bonds one year ago at a coupon rate of 6.8 percent. If the YTM on these bonds is 9 percent, what is the current bond price?

7. LKD Co. has 12 percent coupon bonds with a YTM of 9.9 percent. The current yield on these bonds is 10.4 percent. How many years do these bonds have left until they mature?

8. Both bond A and bond B have 9 percent coupons and are priced at par value. Bond A has 5 years to maturity, while bond B has 20 years to maturity.

a. If interest rates suddenly rise by 1.6 percent, what is the percentage change in price of bond A and bond B?

Bond A	Bond B

b. If interest rates suddenly fall by 1.6 percent instead, what would be the percentage change in price of bond A and bond B?

Bond A	Bond B