#4.

Part A.

Match the yield to maturity to the terms of the bond. All of these bonds pay interest twice a year.

- A. B. C. D. E.	"A $1,000 par value bond that matures in 13 years is currently selling for $1,139.97. The bond pays $53.00 of interest every six months."
- A. B. C. D. E.	"A $1,000 par value bond that matures in 7 years is currently selling for $902.49. The bond pays $55.00 of interest every six months."
- A. B. C. D. E.	"A $1,000 par value bond that matures in 5 years is currently selling for $1,236.99. The bond pays $29.00 every six months."
- A. B. C. D. E.	"A $1,000 par value bond that matures in 17 years is currently selling for $934.24. The bond pays $55.00 of interest every six months."
- A. B. C. D. E.	"A $1,000 par value bond that matures in 5 years is currently selling for $1,122.30. The bond pays $56.00 of interest every six months."

A.	8.77%
B.	8.17%
C.	0.94%
D.	11.91%
E.	13.18%

Part B.

A $1,000 par value bond matures in four years and pays interest semi-annually. It is currently selling for 1,012.06 and has a coupon rate of 2.2%. What is the bond's current yield? (show your answer as a decimal to four places)

Part C.

A $1,000 par value zero-coupon bond with 5 years to maturity has a yield to maturity of 9.6. What is the bond's current price? (Show your answer to two decimals, e.g., 912.34)

Part D.

What is the CAPITAL GAINS YIELD of a $1,000 par value bond that matures in 5 years and pays interest of $37 every six months if the yield to maturity is 4 percent. (Show your answer as a decimal to four places)