1) Carla VistaReal 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 is13.2percent?

2) DebraKingis looking to invest in a three-year bond that makes semi-annual coupon payments at a rate of5.475percent. If these bonds have a market price of $972.51, what yield to maturity can she expect to earn?

3) PaulWhitebought 10-year,10.8percent 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) SunlandInformation Systems management is planning to issue 10-year bonds. The going market yield for such bonds is9.545percent. Assume that coupon payments will be made semiannually. Management is trying to decide between issuing an9percent coupon bond or a zero coupon bond.Sunlandneeds to raise $1 million.

1. What will be the price of an9percent coupon bond?
2. How many9percent coupon bonds would have to be issued?
3. What will be the price of a zero coupon bond?
4. How many zero coupon bonds will have to be issued?

5) CraneCorp. management plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $443.96. What is the yield to maturity on these bonds?

6) PaulWhitebought 10-year bonds issued by Harvest Foods five years ago for $938.95. The bonds make semiannual coupon payments at a rate of9.5percent. If the current price of the bonds is $1,046.77, what is the yield thatPaulwould earn by selling the bonds today?