A) You are considering the purchase of a $1,000 par value bond with a coupon rate of 5% (with interest paid semiannually) that matures in 12 years. If the bond is priced to yield 9%, what is the bond's current price?

The bond's current price is $__

B) Compute the current yield of a(n) 8.5%, 25-year bond that is currently priced in the market at $1,200. Use annual compounding to find the promised yield on this bond. Repeat the promised yield calculation, but this time use semiannual compounding to find yield-to-maturity.

The current yield is __ %

C) A bond has a Macaulay duration of 7.50 and is priced to yield 5.5%. If interest rates go up so that the yield goes to 6.0 % what will be the percentage change in the price of the bond? Now, if the yield on this bond goes down to 5%, what will be the bond's percentage change in price?

If interest rates go up to 6.0%, the percentage change in the price of the bond is __%