1. The following table summarizes prices of various default-free, zero-coupon bonds (expressed as a percentage of face value): Maturity (years) Price (per $100 face value) $95.51 9105 $86.38 $81.65 $76.51 (a) Compute the yield to maturity for each bond. (b) Plot the zero-coupon yield curve (for the first five years). (c) Is the yield curve upward sloping, downward sloping, or flat? 2. Suppose a seven-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.75%. (a) What is the dollar amount of each coupon payment? (b) Is this bond currently trading at a discount, at par, or at a premium? Explain. (c) If the yield to maturity of the bond rises to 7% (APR with semiannual compounding), what price will the bond trade for? 3. Afirm issued a new series of bonds on January 1, 1992. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in thirty years. Coupon payments are made semi-annually (on June 30 and December 31). (a) What was the yield to maturity of the bond on 1/1/92? (b) Calculate the price of the bond on 1/1/97, five years later, assuming that the level of interest rate has fallen to 10%. (c) If, on July 1, 2012, an investor expects the bonds to sell for $896.64. What is the expected yield to maturity on the bonds at that date? 4. A bond with two years remaining until maturity offers a 3% coupon rate with interest paid annually At a market discount rate of 4%, find the price of this bond per 100 of par value. 5. An investor who owns a bond with a 9% coupon rate that pays interest semiannually and matures three years is considering its sale. If the yield-to-maturity on the bond is 11%, find the price of the bond per 100 of par value