1.You have purchased $1,000,000 face value of 10-year bonds at par. You are receiving coupon income of $25,000 every six months.

What is the coupon rate of your bond?

2.

Two bonds have the identical coupon rates of 5.00%. One has a maturity of 2 years and the other has a maturity of 20 years. (5 points each)

Which bonds price is more sensitive to changes in market interest rates? Explain answer

3.If the Yield to Maturity (YTM) changes to 4.75%, what is the new price of the bond?

4.

The Margaret Anne Dance Company issued a $1,000, 30-yr bond 4 years ago with a 4.0% coupon that pays semiannually. The bond is currently priced at $1,040.

What is the Yield to Maturity (YTM) of this bond?

Please answer all! Thank you!