1.Suppose a five-year,$1,000 bond with annual coupons has a price of $897.34and a yield to maturity of 6.2%.

What is the bond's coupon rate?

2. Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000,and a coupon rate of 7.8%(annual payments). The yield to maturity on this bond when it was issued was 6.1%.What was the price of this bond when it was issued?

3.Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of$1,000,and a coupon rate of7.4%(annual payments). The yield to maturity on this bond when it was issued was6.2%.

a.Assuming the yield to maturity remains constant, what is the price of the bond immediately after it makes its first coupon payment?