1.A bond has a yield to maturity of 4.25%, a 3.5% coupon paid annually, a $1,000 face value, and a maturity date 15 years from today. What is the current yield? (Hint: Start by finding the current price of the bond. Then take the annual coupon payment and divide it by the bond price you just found.)

2.The bonds of Quality Manufacturing, Inc. have a 5.6% coupon and pay interest semi-annually. Currently, the bonds are quoted at $1,180.64. The bonds mature in 12 years. What is the yield to maturity? (Hint: It may be easier to find the correct answer by trial and error, especially if you do not have a financial calculator.)

3.One year ago, Auto Land issued 30-year bonds at par. The bonds have a coupon rate of 5% and pay interest annually. Today, the market rate of interest on these bonds is 5.2% APR. How does today's price of this bond compare to the issue price? (Hint: Think about how changes in YTM impacts bond prices. Then find the current market price of the bond and recall percentage change in price = (new bond price old bond price) / old bond price.)