Determine the price of the following bonds. Please show your work.

a. Duration: 2 years Coupon Rate: 3% Face Value: $500 Discount Rate: 3.25% whats the Price: _______________

. This bond is selling at a : PREMIUM or DISCOUNT

b. Duration: 3 years Coupon Rate: 3% Face Value: $500 Discount Rate: 2.75%

whats the Price: __________________ ?

c This bond is selling at a : PREMIUM or DISCOUNT (pick one)

d. A $1,000, 10-year Treasury bond with a yearly coupon of $40 is selling for $900. The market interest rate is:

more than 4% OR less than than 4% (pick one)

e.. This bond is selling for premium or discount (pick one)

f A yield of 4.25% on a $1,000, 10-year Treasury bond with a 5% coupon implies that the bond is priced at a premium or a discount (select one)