1. Consider two bonds, A and B, Both bonds presently are selling at their par value of $1,000. Each has a coupon rate of 12%. Bond A will mature in 7 years while bond B will mature in 6 years. If the yields to maturity on the two bonds change to 10%...

2. A bond with a 12% coupon, 10 years to maturity and selling at 96:00 has a yield to maturity of _____.

3. The duration of a bond is:

1. Fixed for the life of a bond only if interest rates do not change and the bond does not have any options embedded
2. None of the above of the bond
3. Fixed for the life of the bond
4. Fixed for the life of a bond only if interest rates do not change
5. Always equals to time to maturity for bonds trading at PAR

4.

Period (semi annual)	Treasury Spot Rate
1	7.00000%
2	7.04999%
3	7.09998%
4	7.12498%
5	7.13998%
6	7.16665%

What should be the price of an 8% coupon corporate bond with 3 years to maturity that is selling at a static spread of 110pb?