1) Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 20 years to maturity, and a coupon rate of 7.4 percent paid annually.

If the yield to maturity is 8.5 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

2) Cannonier, Inc., has identified an investment project with the following cash flows.

Year	Cash Flow
1		$	920
2			1,150
3			1,370
4			2,110

If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the future value at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

What is the future value at a discount rate of 23 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

3) Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):

Stated Rate (APR)				Number of Times Compounded				Effective Rate (EAR)
	9.6	%			Quarterly			%
	18.6				Monthly
	14.6				Daily
	11.6				Infinite