1. What is the price of a 6% coupon bond maturing in 20 years if investors require a 7% return? 2. What is the price of the bond above if investors require a 5% return? 3. Suppose a 7% coupon bond maturing in 15 years is trading for 90 (90% of par). What is the yield to maturity on the bond? 4. Suppose the bond in question 3 is selling at par. What is the YTM? What is your effective annual return if you are able to reinvest the coupons at an annual rate of 4%? Same question partially answered here. http://www.chegg.com/homework-help/questions-and-answers/question-1-bond-please-answer-questions-stating-formulas-details--price-6-coupon-bond-matu-q13776417?trackid=078cc286&strackid=4cb39e91&ii=3 I believe 3 & 4 was already answered. But looking to get an explanation on 1 & 2 as well.