1. Charles Wilson bought 10-year bonds issued by Harvest Foods five years ago for $932.30. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,045.77, what is the yield that Charles would earn by selling the bonds today? (Round answer to 2 decimal places, e.g. 15.25%.)

2. Carla Vista Inc. has seven-year bonds outstanding that pay a 12 percent coupon rate. Investors buying these bonds today can expect to earn a yield to maturity of 7.650 percent. What is the current value of these bonds? Assume annual coupon payments. (Round answer to 2 decimal places, e.g. 15.25.)

3.

The Sunland Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 9.925 percent. The current market rate for similar securities is 11.6 percent. Assume that the face value of the bond is $1,000. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values youve been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.)

What is the current market value of one of these bonds? (Round answer to 2 decimal places, e.g. 15.25.)

Current market value

$

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What will be the bonds price if rates in the market (i) decrease to 9.60 percent or (ii) increase to 12.6 percent? (Round answers to 2 decimal places, e.g. 15.25.)

			Bond's price
(i)	Decrease to 9.60 percent		$
(ii)	Increase to 12.6 percent		$