4. What is the percentage change in price for the zero coupon bond if the yield changes from 7% to 6%? The bond has a face value of $1,000 and it matures in 6 years. Use the price determined from the first yield, 7%, as the base in the percentage calculation.

The percentage change in the bond price if the yield changes from 7% to 6% is ______________%?

5. Beam Inc. bonds are trading today for a price of $1,137.22. The bond currently has 14 years until maturity and has a yield to maturity of 7.85%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond?

The coupon rate of the bond is _______% (Round to one decimal place)

6. With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from the sales of music are used to pay interest and pricipal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.75% and will mature on this day 37 years from now. The yield on the bond issue is currently 6.35%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons?

The price of the bond today should be $________. (Round to the nearest cent)

7. What is the price of a 5 year, 8.3% coupon rate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 6.7%?

The price of the bond is $______.(Round to the nearest cent.)