1. A coupon bond paying semiannual interest is reported as having an ask price of 113% of its $1,000 par value. If the last interest payment was made one month ago and the coupon rate is 5%, what is the invoice price of the bond? Assume that the month has 30 days.

2. A bond with an annual coupon rate of 4.5% sells for $985. What is the bonds current yield?

3. Suppose that todays date is April 15. A bond with a 8% coupon paid semiannually every January 15 and July 15 is listed in The Wall Street Journal as selling at an ask price of 1,011.667. If you buy the bond from a dealer today, what price will you pay for it?

4. A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8.40% with interest paid annually. If the current market price is $840, what will be the approximate capital gain of this bond over the next year if its yield to maturity remains unchanged?

5. You buy a five-year bond that has a 3.75% current yield and a 3.75% coupon (paid annually). In one year, promised yields to maturity have risen to 4.75%. What is your holding-period return?