1. Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1000, and a coupon rate of 7.4 % (annual payments). The yield to maturity on this bond when it was issued was 5.8%. What was the price of this bond when it was issued?

2. Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $ 1000, and a coupon rate of 7.7% (annual payments). The yield to maturity on this bond when it was issued was 6.2%. Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?

3. Your company currently has $ 1000 par, 5.5 % coupon bonds with 10 years to maturity and a price of $ 1074. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months.