1. A semiannual coupon bond with face value of $1,000 has a coupon rate of 5% and matures in 12 years. The market-determined discount rate on this bond is 14%. What is the price of the bond?

2. A semiannual coupon bond with coupon rate of 5% and face value of $1000 trades at $1050. It matures in 7 years. What is its yield to maturity (YTM)?

3. A 5 year semiannual coupon bond with a face value of $1,000 trades at $973. The market-determined discount rate is 7%. What is the coupon rate? Answer in percent and round to two decimal places.

4. If a bond always trades at a discount

A. then it is a coupon bond.

B. then it is trading above par.

C. then it is a zero coupon bond.

D. then it is trading at par.

5. A zero coupon bond with a face value of $1,000 that matures in 5 years sells today for $657. What is the yield to maturity? (Use annual compounding.)