1.We have a bond that pays $90 annually and has a maturity of 15 years. If the current price is $1200, what is its yield to maturity? If it is callable in 4 years at $1090, what is the yield to call?

2. We buy stock worth $100,000. Each share has a price of $10. Assume that the price falls to $3 per share. Also, assume the initial and maintenance margin requirements are 60% and 40% respectively. Talk on the beginning situation, in terms of debt and equity. Also, what happens when the value of the asset decreases for debt , equity and any margin calls.

3.We buy a 18% 25 year bond now, when market rates are 10%, and intend to sell it in 3 years when market rates are 22%. What should we pay now?