2. Airborne Airlines Inc. has a $1,000 par value bond outstanding with 25 years to maturity. The bond carries an annual interest payment of $89 and is currently selling for $950. Compute the yield to maturity.
3. Midland Oil has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 25 years. Compute the current price of the bonds if the present yield to maturity is. .A.7 percent.

b. 10 percent.

c. 13 percent.

4. Determine the semi-annual interest payment for the following three bonds: 4 percent coupon corporate bond, 75 percent coupon Treasury note, and a corporate zero-coupon bond maturing in 15 years. (Assume a $1,000 par value.)

A) $4.00, $4.75, $0, respectively

B) $20.00, $23.75, $0, respectively

C) $20.00, $23.75, $150, respectively

D) $40.00, $47.50, $0, respectively