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, 5 years to maturity, and a coupon rate of 7 percent paid annuallly. If the yield to maturity is 10 percent, what is the current price of the bond?

2) McConnell Corporation has bonds on the market with 10 years to maturity, a YTM of 10.0 percent, a par value of $1,000, and a current price of $1,226.50. The bonds make semiannual payments. What must the coupon rate be on these bonds?

3) Chamberlain Co. wants to issue new 10-year bonds for some much-needed expansion projects. The company currently has 11.6 percent coupon bonds on the market that sell for $1,326.89, make semiannual payments, and mature in 10 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000.