1. Consider three 30 year bonds with annual coupon payments. One bond has a 5% coupon rate, one has a 3% coupon rate and one has a 2% coupon rate, one has a 3% coupon rate, and one has a 2% coupon rate. if the yield to maturity of each bond is 4%, what is the price of 3% coupon bond per $100 face value? a. 117.29, b. 82.70,c. 65.41, d. 100

2. Consider two bonds, each pays semi-annual coupons and 5 years left until maturity. One has a coupon rate of 5% and the other has a coupon rate of 10%, but both currently have a yield to maturity of 8%. how much will the price of 10% coupon bond change if its yield to maturity decreases from 8% to 7%? a. 87.83 to 91.68,

b. 108.11 to 112.47, c. 87.83 to 112.47, d. 91.68 to 112.47.

3. what happens to the coupon rate of a $1000 face value bond that pays $80 annually in interest if market interest rates change from 9% to 10%? a. the coupon rate increases to 10%, b. the coupon rate remains at 9%, c. the coupon rate remains at 8%, d. the coupon rate decreases to 8%.

Please show workings.