1.The Broomfield Bricklayers has a bond issue outstanding with an annual coupon rate of 9%. The par value of the bond is $1,000. Calculate the current yield of the bond if the bond's current price was $974.See pages 174-176.

2.Refer to Additional Problem 1. If the sale price of this bond was $1,103 a year later, what is the capital gains yield?See pages 174-176.

3.Refer to Additional Problems 1 and 2. What would the total expected return for the bond be?See pages 174-176.

Refer to the bond valuation calculation on page 176 of the text. Using a financial calculator, solve for the present value of the 10-year bond on its issue date. The bond has a par value of $1,000, coupon rate of 10%, and a discount rate of 8%.