1) Nungesser Corporation has issued bonds that have a 9 percent coupon rate, payable semiannually. The bonds mature in 8 years, have a face value of $1,000, and a yield to maturity of 8.5 percent. What is the price of the bonds? [5] 2) The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus S1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year. a) What will be the value of each of these bonds when the going rate of interest is (1) 5 percent, 8 percent, and (3) 12 percent? Assume that there is only one more interest payment to be made on Bond S. [6] b) Why does the longer-term (15-year) bond fluctuate more when interest rates change than does the shorter-term bond (1-year)? [2] 3) The bond has a price of $1320 and the face value is $1000. The annual coupons are at a 10% coupon rate ($100) and there are 8 years left until the bond matures. What is the yield to maturity rate? 4) The stock of the Health Corporation is currently selling for $20 a share and is expected to pay a $1 dividend at the end of the year. If you bought the stock now and sold it for $23 after receiving the dividend, what rate of return would you earn? [3]