1.Yield to Maturity. Assume that Tennis Galaxy bonds currently sell for $1,300, have a par value of $1000, a call value of $1,200, an annual coupon payment of $100. The bonds have a 15-year maturity, but can be called in 10 years at $1,200. What is the yield to maturity (YTM)?

2.Current Yield on a Bond. Assume Blue Chip Corporation's bonds currently sell for $1,100. They have a 6-year maturity, an annual coupon of $80, and a par value of $1000. What is the current yield or the yield in the next one year?

3.Eight years ago a Fortune 100 company issued a 30-year bond with an 8% coupon paid semi-annually and the current price is 94% of its face value. If interest rates move upward the price of this bond can be expected to