3. Midland Oil has $1,000 par value bonds outstanding at 8% interest. The bonds will mature in 20 years with annual payments. Compute the current price of the bonds if the present yield to maturity is

a. 6 percent

b. 10 percent

4. Rodgers phone company has a $1,000 par value bond outstanding that pays 4.5% in annual payments. The current yield to maturity on similar bonds in the market is 7%. Compute the price of the bonds for the following maturity dates.

a. 20 years

b. 15 years

c. 5 years