1. Aetna Inc. issued an annual coupon bond with 7% coupon rate last year. It has 11 years remaining to maturity. If investors require 11% return, how much should they pay for the bond? Assume that par value is $1,000.

The bond price = $__________

2. How much should investors pay for a 15%, semiannual coupon bond of Toyota Company? The bond has $1,000 par value and 27 years remaining to maturity. Investor's required return is 7%.

The bond price = $__________

3. One of P&G's bonds is an annual, fixed-coupon bond with 10% coupon rate and 17 years left to maturity. If the bond is sold at 68% of par value, what is yield to maturity of the bond? Note that the price is % of par value. For example, 120% suggests $1,200 price for $1,000 par value (or $120 price for $100 par value)

Yield to maturity = __________%