1)What is the value of two annual payments of 100 and a terminal payment in two years of 1000. Assume rates are:

a)10%

b)9%

c)11%

2)What is the price of a 10-year 3% coupon bond if market interest rates are 4%. Assume payments are semi-annual.

3)Same bond as problem 7 but the interest rate is 2%?

4)What is the market yield of a 7-year 4% coupon bond if the price is $94.1545 per $100 face amount?

5)Same bond as problem 9 but the price is $106.2717 per $100 face amount.

6)Assume two annual payments of 7 and a terminal payment in two years of 100. If the value today is 99, is the irr < or > than 7%?

7)If the value today is 101, is the irr < or> then7%?

8)You invest 90 today and get a dividend in one year of 5. The value of your investment after the year is 100. What is the total rate of return?

9)You invest 100 today and get a dividend in one year of 5. The value of your investment after the year is 95. What is the total rate of return?