a) A 9-year coupon bond with $1,000 par value, semi-annual coupon pay- ments, is selling at $905.06. The bond has a yield-to-maturity of 8%. What is the coupon rate of this bond?

b) A semi-annual coupon bond has a $1,000 par value, 12 years to maturity, and an 8% coupon rate and sells for $1,144.38 . What is its yield to maturity (YTM)? (For YTM, Write down the expression for YTM and then use a nancial calculator or a spreadsheet program to nd the answer. Please write down your answer in the form of x.xx%.)

c) A six-year bond with 5 percent annual coupon is currently selling at par. The expected yield to maturity a year from today is 5%. Suppose you plan to sell the bond at the end of one year, right after receiving your coupon payment. What is your expected return on bond investment? Note: You don't need a calculator to answer this question, if you have sucient knowledge on bond. Explain how you reach your answer.