1. Microhard has issued a bond with the following characteristics:

Par: $1,000

Time to maturity:10 years

Coupon rate: 13 percentSemiannual paymentsCalculate the price of this bond if the YTM is(Do not round intermediate calculations and round your answersto 2 decimal places, e.g., 32.16.):

Price of the Bond

a.13 percent$

b.15 percent$

c.11 percent$

2. Rhiannon Corporation has bonds on the market with 12.5 years to maturity, a YTM of 7.3 percent, and a current price of $1,057. The bonds make semiannual payments.

What must be the coupon rate on these bonds?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

3. Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 25 years to maturity, and a coupon rate of 7.9 percent paid annually.

If the yield to maturity is 9 percent, what is the current price of the bond?