1. 1) XYZ Industries bond has a 10% coupon rate and a $1,000 face value. Interest is paid semiannually, and the bond has 25 years to maturity. If investors require a 13% yield, what is the bonds value? What is the effective annual yield on the bond?

2. 2) XYZ Corp. bond carries an 8% coupon, paid semiannually. The par value is $1,000, and the bond matures in six years. If the bond currently sells for $911.37, what is its yield to maturity? What is the effective annual yield?

3. 3) XYZ Co. issued 15-year bonds a year ago at a coupon rate of 4.9%. The bonds make semiannual payments and have a par value of $1,000.

   1. a) If the YTM on these bonds is 4.5%, what is the current bond price?

   2. b) If the YTM on these bonds is 4.9%, what is the current bond price?

   3. c) If the YTM on these bonds is 4.0%, what is the current bond price?