1. What is the value of a $1,000 par bond with a 5% coupon (paid semiannually) and 17 years to maturity if its yield is 3.7%? Round to the nearest $0.01, drop the $ symbol.

2. Determine whether the bonds below would sell above, at, or below par value.

• a 4% coupon and a 3% yield

  above

• a 2.75% coupon and a 1.88% yield

  below

• a 5.125% coupon and a 5.125% yield

  at

• a 7% coupon and an 11% yield

  below