(a) Is the yield to maturity (YTM) on a bond the same thing as the required return? (b) Is YTM the same thing as the coupon rate? (c) Suppose today a 7 percent coupon bond sells at par (i.e., the price equals the face value). Two years from now, the return required by the market on the same bond drops to 6 percent. What is the couple rate on the bond then? What is the YTM then? 2. Suppose that you buy a 10 percent coupon, 3-year bond today with a par value of $1,000. The bond pays coupons semiannually. (a) Sketch the future cash flows of this bond. (b) If the yield to maturity is 5 percent, what is the current bond price? (c) In light of your answer to (b), is this a discount bond or a premium bond? 3. A company has bonds on the market making annual payments, with six years to maturity, a coupon rate of 5 percent, and a par value of $1,000. What is the current bond price if the yield to maturity is 8 percent? 4. You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. If the yield to maturity on this bond is 4.6 percent, what is the price of the bond? Assume the bond makes semiannual coupon payments. 5. A company has a bond on the market with 15 years to maturity, a YTM of 5.5 percent, a par value of $1,000, and a current price of $1,050. The bond makes semiannual coupon payments. What must the coupon rate be on the