1. Weissman Co. issued 17-year bonds a year ago at a coupon rate of 10 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 7 percent, what is the current bond price.

2. You purchase a bond with an invoice price of $1,390. The bond has a coupon rate of 9.6 percent, and there are 4 months to the next semiannual coupon date. What is the clean price of the bond? Assume a par value of $1,000.

3. You want to have $3 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 6.5 percent. What real amount must you deposit each year to achieve your goal?

4. Both Bond Sam and Bond Dave have 6 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years to maturity, whereas bond Dave has 18 years to maturity.

- If the interest rate suddenly rises by 5 percent, what is the percent change in the price of Bond Sam?

- If interest rates suddenly rise by 5 percent, what is the percent change in the price of Bond Dave?

- If rate were to suddenly fall by 5 percent instead, what would the percent change in the price of Bond Sam be then?

- If rate were to suddenly fall by 5 percent instead, what would the percent change in the price of Bond Dave be then?