1. A bond offers a coupon rate of 4%, paid annually, and has a maturity of 16 years. The current market yield is 8%. Face value is $1,000. If market conditions remain unchanged, what should the price of the bond be in 1 year?

2. A bond offers a coupon rate of 7%, paid annually, and has a maturity of 12 years. The current market yield is 13%. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond?

3. You own a bond with the following features: face value of $1000, coupon rate of 5% (semiannual compounding), and 15 years to maturity. The bond has a current price of $1,115. The bond is callable after 5 years with the call price of $1,050 (i.e.: the call premium is $50). What is the yield to call if the bond is called at 5 years (state as an APR)?