5. As an investor, you are studying a bond with a $50 coupon that matures in 15 years. You know from experience that your opportunity cost of money is always about 7.5%. What is the most you would pay for this bond?

N =

I/YR =

PV = price =

PMT =

FV =

6. You see a bond that matures in seven years and has a yield-to-maturity of 4.5%. What does that 4.5% actually mean in practical, investor terms?

7. A Boeing bond has a coupon of 4.5%. The current yield-to-maturity is 5.12%. You dont need to do any calculations while you answer this: Is the bond trading at a discount or at a premium? Explain how you know this and why it makes sense.