1. What is the current price of a $1000 par value bond if has 12.5 years until maturity, a YTM of 6.6%, and a coupon rate of 6% with semi-annual coupon payments?

2.The bonds of Lapeer Airlines, Inc., are currently trading on the market at $1,119.34. They have a par value of $1000, make semi-annual coupon payments with a coupon rate of 6.4%, and a YTM of 4.6%. How many years until these bonds mature?

3.You have decided to try to make a fortune by buying the bonds of distressed companies. You have found a C-rated bond that has a YTM of 29.6%, a coupon rate of 5.2% with semi-annual coupon payments, a par value of $1000, and 4.5 years remaining until maturity. What is the most you should be willing to pay for this bond?

4. True or False: A discount bond is one in which its YTM is lower than its Coupon Rate.

5. A bond has a par value of $1000, a coupon rate of 5%, 24.5 years remaining until maturity, and makes semi annual payments. You can currently buy the bond on the market for $1000. What is the bond's YTM?

• Less than 5%

• 5%

• More than 5%

• There is not enough information provided to determine the YTM.