1. You just purchased a 20-year semi-annual coupon bond with a par value of $1,000 and a coupon rate of 7.5%. The nominal yield to maturity is 8.5% per annum. Calculate the market price of the bond.

2. Three years later, immediately after receiving the sixth coupon payment, you sell the bond to your best friend. Your best friends nominal yield to maturity is 9% per annum. Calculate the price paid by your best friend.

3. Write down an equation that can be solved to find the return as a nominal annual rate compounding half-yearly on your investment, assuming you sold the bond to your best friend as described in 2. You do NOT need to solve this equation.