1. ALASKA PIPELINE Inc. issued a ten year bond that pays a coupon rate of 6.10 percent. Coupons are payable annually. If the market rate of interest is 5.75 percent, what is the market value of the bond? (30 points) Note: You must show all your work, including the formula, to get credit. A simple answer will get zero credit. 2. SIEMENS has an outstanding bond that will mature in seven years and pays 8.6 percent coupon semiannually. You are interested to buy the bond. Your required rate of return is 6.8 percent, and today the bond is selling at $1,042.55. Will you buy the bond? Justify your answer. (30 points) Note: You must show all your work, including the formula, to get credit. A simple solution will get zero credit. Additionally, explain in words why the bond is attractive or not for you. 3. NUGENT Inc. has six-year outstanding bonds that pay a coupon rate of 8.5 percent. The coupons are payable semiannually. The bond is currently selling at $1,068.84. What is the yield to maturity (YTM) of the bond? (30 points) Note: You must show all your work, including the formula, to get credit. A simple answer will get zero credit. 4. The following bond quote of Apple is copied from a financial newspaper: Apple 9.5 35 9.6 21 107 % -3/4 If the bond has a face (par) value of $1000, what was the market price in dollars? (10 points) [Apple Computer, and not the apple you eat)