1.A company is planning to issue 4-year zero coupon bonds with a face value of $1,000. If the market yield is 14.5 percent p.a. and similar coupon-bearing bonds will pay semiannually, what will be the price of these bonds? (Round to the nearest cent; do not use $ sign or commas eg $600.098 is shown 600.10)

2.Suppose an investor earned a yield of 12.4 percent p.a on a bond paying coupons twice a year. What is the effective annual yield (EAY) on this investment? (answer as a percentage rounded to two decimal places without % sign. eg 2.889% would be written 2.89)

3.

Jill is interested in a 6-year bond which pays a coupon of 8.6 percent annually and trades at a yield of 9.3% per annum. The face value is $1,000. What is the current price of this bond? (to the nearest cent)

Select one:

a. $586.51

b. $968.88

c. $1031.78

d. $968.36