1. a: The market price of a semi-annual pay bond is $981.96. It has 10.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the yield to maturity?

b: Assume a par value of $1,000. Caspian Sea plans to issue a 8.00 year, semi-annual pay bond that has a coupon rate of 8.01%. If the yield to maturity for the bond is 7.66%, what will the price of the bond be?

c: Assume a bank offers an effective annual rate of 5.37%. If compounding is monthly what is the APR?

d: A bank offers 10.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?