A 10 year Treasury Note currently pays a nominal interest rate of 2.25%. 10 year corporate investment grade bonds are currently paying a nominal interest rate of 4.5%. What is the risk premium for corporate bonds?

An insurance agent is trying to sell you an immediate-retirement annuity (big surprise), which for a single amount paid today will provide you with $12,000 at the end of each year for the next 25 years. You currently earn 9% on low risk investments comparable to the retirement annuity. Ignoring taxes, what is the most you would pay for this annuity?

Calculate the yield to maturity for the following bond: Par = $1000 Coupon = 5% (interest is paid annually) Years to maturity = 3 Current Value = $800

You just purchased a $1000 par bond for $982.09. The current market interest rate is 10% and the bond pays a coupon of $90/year. You intend to hold the bond until maturity - 5 more years. How much will you receive for your bond in 5 years?