1) Carla Vista Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rate is 13.2 percent?

2) Debra King is looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of 5.475 percent. If these bonds have a market price of $972.51, what yield to maturity can she expect to earn?

3) Paul White bought 10-year, 10.8 percent coupon bonds issued by the U.S. Treasury three years ago at $902.98. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $840.93, what is his realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments.

4) Sunland Information Systems management is planning to issue 10-year bonds. The going market yield for such bonds is 9.545 percent. Assume that coupon payments will be made semiannually. Management is trying to decide between issuing an 9 percent coupon bond or a zero coupon bond. Sunland needs to raise $1 million.