Assume all bonds pay interest semiannually.

2. Calculate the market price of a $1,000 face value bond under the following conditions.

Coupon Time Until Current

Rate Maturity Discount Rate

a. 12% 15 yrs 10%

b. 7% 5 yrs 12%

c. 9% 25 yrs 6%

d. 14%. 30 yrs 9%

e. 5% 6 yrs. 8%

3. What is the current yield on each of the bonds in the previous problem.