1) Find the price for a 7.5% coupon bond under the following conditions.

1a. 30 years to maturity, required return is 9%

1b. 30 years to maturity, required return is 7.5%

1c. 30 years to maturity, required return is 6%

1d. 10 years to maturity, required return is 9%

1e. 10 years to maturity, required return is 7.5%

1f. 10 years to maturity, required return is 6%

1g. 2 years to maturity, required return is 9%

1h. 2 years to maturity, required return is 7.5%

1i. 2 years to maturity, required return is 6%

2) The current price of a 9.75% coupon bond with 20 years to maturity is $1318, what is the YTM? If the bond contains a call provision that allows the company to call the bond for $1050 7-years from now, what is the YTC? Based on the available information, is this bond likely to be called?

3) Find the price of a 20-year zero coupon bond if the required return on such a bond was 12%? What if the required return was 10%?