1.You have decided to try to make a fortune by buying the bonds of distressed companies. You have found a C-rated bond that has a YTM of 29.6%, a coupon rate of 5.2% with semi-annual coupon payments, a par value of $1000, and 4.5 years remaining until maturity. What is the most you should be willing to pay for this bond?

2. True or False: A discount bond is one in which its YTM is lower than its Coupon Rate.

3. A bond has a par value of $1000, a coupon rate of 5%, 24.5 years remaining until maturity, and makes semi annual payments. You can currently buy the bond on the market for $1000. What is the bond's YTM? Less than 5% 5% More than 5% There is not enough information provided to determine the YTM.