1.BOND YIELD.Consider a $1,000 par value bond with a 7% annual coupon. The bond pays interestannually. There are 2 years remaining until maturity. What is the current yield on the bond assuming that the required return on the bond is 10%? Assume simple compounding.

2.A 2-year note was issued on 2/28/2018 (your settlement date was 3/1/2018) If it has coupon of 2.5% and sold for 99.327, what is its yield to maturity?

3.TAX-EQUIVALENT YIELD.A 10-year municipal bond has a coupon rate of 4.5% and just sold today for 104.56. It matures on December 1, 2023. What is its tax-equivalent yield? Assume a marginal tax rate of 40% and interest is paid June 1 and December 1. (Do not use the % sign with your answer).