Chapter 7 Exercise Problems 1. The Apollo Inc.'s bonds have four years remaining to maturity. Interest is paid annually; the bonds have a $1,000 par value; the coupon rate is 9%. (a) What is the yield to maturity at a current market price of $828.70? (b) Suppose an investor purchased the bond at $828.70 and a year later the bond price increased to $840 each. What rate of return would the investor have earned for the year? (c) If the yield to maturity for the bond were 10% and stayed at 10% for the coming year, calculate the market price of the bond at the end of the year