1. If you expect interest rates to fall, would you most likely prefer a callable or non-callable bond?

2. What is the value of a 5-year bond with a coupon rate of 5% and a yield of 5%? Payments are semi-annual.

3. A bond has a coupon rate of 3% and pays coupons semi-annually. The bond matures in 11 years and has a yield of 4%. What is the value of the bond?

4. A 3 year zero coupon bond has a yield of 4% compounded semi-annually. What is its value today?

5. A bond sells for $1000 and matures in 6 years. The bond makes semi-annual payments and has a yield of 3%. What is the coupon? What is the coupon rate?