7. A bond has a face value of $1000, and has 6% annual coupons. It is five years from maturity. If the market is providing a 5% return currently, what is the bond worth? (Before performing the calculation, can you guess whether the bond will sell at a discount, at par, or at a premium?) 8. You've got a rich aunt and what an exasperating person she is! Provided you show her you can do the math correctly and find its present worth, she is going to arrange a 15-payment annuity for you. It will pay you $600 year starting immediately. She wants you to assume market rates of 9%, so what is the annuity worth? 11. You've purchased a $20,000 bond for $20,000, which matures in 2035 . The bond comes with 10% coupons.... a. Confirm that it has a yield-to-maturity of 10%. b. Challenge Question: Why is this bond selling for its face value? 12. A $50,000 bond, 14 years from maturity, is priced at $17,024. It's coupon rate is 0% a. What is the yield-to-maturity of this bond? b. Challenge Question: Given this bond's pricing, what would the current return on the market portfolio be