A. Calculate the yield to maturity for each of the following bonds:

1. A discount bond with a par value of $1,000, a current price of $997.38, and it matures in one month.

2. A coupon bond with a par value of $1,000, a coupon rate of %6 (interest payments totaling $60 each year), a current price of $1166.11, and it matures in ten years.

3. A coupon bond with a par value of $1,000, a coupon rate of %3 (interest payments totaling $30 each year), a current price of $920.84, and it matures in ten years.

4. A coupon bond with a par value of $1,000, a coupon rate of 10% (i.e., the holder receives $100 annually), a current price of $920, and it matures in ten years.

PV=FV/(1+i)^t

YTM= [Annual Interest +(Par Value- Current Price/Years to Maturity)/(Par Value + Current Price/2)]

Return= Annual Interest+(P1-P0)/P0