a. A zero-coupon bond with a face value of $100 is currently trading at $83.6. If time to maturity is 7 years, what is this bond's yield-to-maturity? Round to the hundredth of a percent. (e.g., 4.32% =4.32)

b. A 5-year zero-coupon bond has a face value of $1,000. If its YTM changes from 3.2% to 5.7%, what is the resulting percentage change in its price? Use the price determined from the first yield, 3.2%, as the base in the percentage calculation. Round to the nearest hundredth of a percent. (e.g., 4.32% = 4.32). [Hint: Percent price change = ((P2-P1)/P1)x100. If the price dropped, enter a negative number]

c. A bond with a $1,000 face value has a 5% annual coupon rate. The bond matures in 18 years. The current YTM on the bond is 3.2%. If you were to buy this bond and hold it for 6 years, how much would the price change while you hold it? Assume the bond's YTM remains the same. Answer in dollars and round to the nearest cent. [Hint: 1) If the price drops, the change is a negative number. 2) Compute and compare the prices under the two scenarios.]