1. Describe following for Bonds :
   1. coupon rate
   2. current yield
   3. Yield to maturity
2. Which ones of the above rates/yield can change over the life of the bond and if yes, why? ( 10 points)
3. Research and find a bond for large blue chip company like McDonald, Intel, GE or any other from Dow Jones 30 list. Provide following ( and list source)
   1. Bond information : Company, rating
   2. Maturity date
   3. Current price
   4. Coupon rate %
   5. Current yield %
   6. Yield to Maturity (YTM)

4. if overall interest rates in the economy start to go up, what will happen to the price of the bonds? Explain? ( 10 points)

5. What is a callable bond and in what type of interest environment would the lenders exercise the call option on the bond and why? ( 10 points)

EXCEL EXCERCISES:

6. Calculate Bond price :
   • Par Value : $ 1000
   • Coupon rate : 3 % ( paid annually)
   • Yield to maturity rate (YTM) : 5 %
   • Time to maturity 10 years