1. Patriot industries has a 8-year bonds outstanding. The bonds have a coupon rate of 4.8% and coupon payments are made semiannually. The face value is $1000. If the yield is 8.2% compound semiannually, find the price of the bond.

2. Ajax has a bond with a 9% coupon. Coupons are paid semiannually. The 10-year bond has a price of $1100 and a face value of $1000. What is the amount of the coupon?

3. The yield rises by 2%. Which bond will have a greater percentage change in price: a) A 16-year, zero coupon bond? b) A 2-year, 7% coupon bond? c) A 5-year, 4% coupon bond?

4. Ajax wants to issue a 10 year-zero coupon bond. The bond will have a face value of $1000. The yield on 10-year government T-bonds is 5%. Ajax has a rating of BBB, and you estimate the default risk premium at 5.8%. The bonds will be privately placed, so trading will be difficult. The liquidity premium is 2.7%. Find the price of the bond. Assume all yields have annual compounding.