1. You have a ten year bond that you purchased for $1000, it has a face value of $1000 and a coupon rate of 10% a. What is the yield to maturity? b. Is it selling for face value or at a discount or at a premium? 2. One year later you want to sell the bond in number 1. The market yield for that type of bond is now 13%. a. What will happen to the price of that bond? Will it go up or down? b. Is it selling for face value or at a discount or at a premium? 3. What is a zero coupon bond? Explain how investors get their return 4. What is difference between Muni Bonds and Corporate Bonds? 5. What is a general obligation bond? A revenue bond? 6. There is a bond that pays a 12% coupon, has three years left to maturity, a face value of $1,000 and market yields are 10%. What is the price this bond should sell for? What is the current yield? 7. A two year bond that yields 10% has a coupon rate of 10% a. What is the price this bond will sell for? (Hint you do not need to do any math here) b. What is the dollar value of the coupon that is paid? c. What is the price it should pay for if the market yields now drop to 8%?