1a. Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in 28 years, has a coupon rate of 6.7% with semi-annual payments. The par value of the bond is $1000, while the current market value equals $934.20. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) Answer:

1b. Mickey and Minnie just bought a zero coupon bond for $649.66, but they cannot recall when it matures. The yield to maturity equals 10.5%. Can you help Mickey and Minnie? The bond's face value is $1000. (Assume annual discounting) (Enter your answer in years and round to 2 decimal places.) Answer:

1c. Your client is considering the purchase of a bond that is currently selling for $1058.15. The client wants to know what annual rate of return can they expect to earn on the bond. The bond has 27 years to maturity, pays a coupon rate of 7.8% (payments made semi-annually), and a face value of $1000. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) Answer: