1. Consider the following three bond quotes: a Treasury note quoted at 97.88, a corporate bond quoted at 103.05, and a municipal bond quoted at 101.70. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars? (Do not round intermediate calculations and round your final answers to 2 decimal places.)
2. Whats the current yield of a 4.40 percent coupon corporate bond quoted at a price of 101.98? (Round your answer to 2 decimal places.)
3. A 6.40 percent coupon bond with 23 years left to maturity is priced to offer a 5.3 percent yield to maturity. You believe that in one year, the yield to maturity will be 5.8 percent. What would be the total return of the bond in dollars? (Assume interest payments are semiannual.) (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) What would be the total return of the bond in percent? (Assume interest payments are semiannual.) (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
4. A corporate bond with a coupon rate of 7.9 percent has 18 years left to maturity. It has had a credit rating of BBB and a yield to maturity of 8.6 percent. The firm has recently gotten into some trouble and the rating agency is downgrading the bonds to BB. The new appropriate discount rate will be 9.9 percent. (Assume interest payments are semiannual.) What will be the change in the bonds price in dollars? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) What will be the change in the percentage? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)