1- A bond that is traded in the market for the price of SAR 990 and has an annual coupon payment of SAR 20 which mature within 5 years.

a- calculate the interest rate.

b- If the bond has a semiannual coupon payment, what is the interest rate?

2- How much would you pay for the bond that mature after 30 years and has a semiannual coupon payment of 7% and the current interest rate is 5%? What is the interest rate should be if you wanted to purchase a bond at a discount?

3- How many years left for a bond that pay semiannual coupon payment with a stated coupon rate of 14% that is traded in the market for SAR 850?

4- Would you purchase a bond that has 8 years left and the current interest rate is 3% sold for SAR 800 and why?What kind of a bond is this?