1. Consider a 20-year 8% coupon-paying bond with a face value of $1,000 that pays interest semi-annually. If the yield to maturity is stated to be 6% annually, what is the price of this 20-year 8% coupon bond that pays interest semi-annually? Be sure to clearly set up this problem and do the mathematical computations to generate the answer.

2. There is a zero coupon bond with a face value of $1,000 that will mature in 7 years. If it has a price of $743.00 today, what is its yield to maturity?

3. What is the value or price today of a $1,000 face value 6% coupon rate 10-year bond with a yield to maturity of 5% that pays interest annually? Provide your price or value to at least 6 decimals.

4. Once again consider this same 6% coupon paying bond from the question immediately before and assume you bought that bond at the price you calculated above out to at least 6 decimals. Also, assume it is now two years after you purchased that bond and you have just received the interest payment due at the two year time point. You have noted that bond yields have changed over the two year time period and for a number of reasons you have decided to sell the bond. Just after the year two interest payment has been made, the current market yield to maturity required by purchasers of that bond is 4%. If just after the year two interest payment has been made to you, you sell the bond at the appropriate market price, what will be the annual return or yield you will have actually earned for the two years you owned the bond? Be sure to c