1. A bond trader purchased each of the following bonds at a yield to maturity of 11%.Immediately after she purchased the bonds, interest rates fell to 9%. What is the percentage change in the price of each bond after the decline in interest rates? Fill in the following table:

Price @ 11%Price @ 9%Percentage Change

10-year, 10% annual coupon

10-year zero

5-year zero

30-year zero

Perpetuity, $100 annual coupon

1. An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 9.6%. One bond, Bond C, pays an annual coupon of 10%, the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 9.6% over the next 4 years, what will be the price of each of the bonds at the following time periods? Fill in the following table:

TimePrice of Bond CPrice of Bond Z

1. Jackson Corporation's bonds have 16 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 12%. The bonds have a yield to maturity of 13%. What is the current market price of these bonds?
2. Wilson Corporation's bonds have 18 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value and the coupon interest rate is 11%. The bonds sell at a price of $880. What is their yield to maturity?