1. A 6-year, 8% (semiannual) bond has a YTM of 9%. At what price should this bond be sold? Always assume $1,000 face value for these questions.
2. A 6-year, 8% (semiannual) bond has is selling for $1,018.16. Calculate the YTM of this bond.
3. A 6-year, 8% (semiannual) callable bond has a YTM of 9% and a call price of $1,075. The grace period for this bond (number of years until it can be called is three years). Calculate the YTC of the bond.