1) A zero coupon bond has a face value of $1000 and matures in 5. Investors requirea(n) 7.4% annual return on these bonds. What should be the selling price of thebond?

2) A Ford Motor Co. coupon bond has a coupon rate of 7%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 26 years from tomorrow. The yield on the bond issue is 6.2%. At what price should this bond tradetoday, assuming a face value of 1,000?

3) What is the percentage change in price for a zero coupon bond if the yield changes from 6.5% to 5.5%? The bond has a face value of $1,000 and it matures in 10 years. Use the price determined from the firstyield, 6.5%, as the base in the percentage calculation.