1. Barbara Jones is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.375 percent. If these bonds have a market price of $978.44, what yield to maturity can she expect to earn?

2. Carla Vista Corp. management plans to issue seven-year zero-coupon bonds. It has learned that these bonds will sell today at a price of $442.66. What is the yield to maturity on these bonds?

3.Wildhorse, Inc., has four-year bonds outstanding that pay a coupon rate of 6.90 percent and make coupon payments semiannually. If these bonds are currently selling at $917.89. What is the yield to maturity that an investor can expect to earn on these bonds? What is the effective annual yield?