1. A semiannual coupon bond with face value of $1000 has a coupon rate of 8% and matures in 15 years. The market-determined discount rate on this bond is 15%. What is the price of the bond? Round to the penny.

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

3. A 5-year semiannual coupon bond with a face value of $1000 trades at $864. The market-determined discount rate is 4%. What is the coupon rate? Answer in percent and round to two decimal places

4.

Which of the following is true of shorter maturity bonds?

There is no relationship between maturity and yield.

They generally have higher yields than bonds with longer maturities.

They tend to have negative yields.

They generally have lower yields than bonds with longer maturities.