Need help with questions below...

1.What is the percentage change in price for a zero coupon bond if the yield changes from 7% to 5%? The bond has a face value of $1,000 and it matures in 18 years. Use the price determined from the firstyield, 7%, as the base in the percentage calculation.The percentage change in the bond price if the yield changes from 7% to 5% is ______%. (Round to two decimalplaces.)

2.Beam Inc. bonds are trading today for a price of $,265.12. The bond currently has 22 years until maturity and has a yield to maturity of 2.43%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of thebond? The coupon rate of the bond is _________%. (Round to one decimalplace.)

3.With celebritybonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.7% and will mature on this day 32 years from now. The yield on the bond issue is currently 6%. At what price should this bond tradetoday, assuming a face value of $1,000 and annualcoupons? The price of the bond today should be

$________. (Round to the nearestcent.)

4.What is the price of a 6-year, 8.4% couponrate, $1,000 face value bond that pays interest annually if the yield to maturity on similar bonds is 7%?The price of the bond is

$_______. (Round to the nearestcent.)

5.If the nominal rate of interest is 14.01% and the real rate of interest is 7.49%, what is the expected rate ofinflation? The expected rate of inflation is

__________%. (Round to two decimalplaces.)

6.Consider a$1,000 face value zero coupon bond which matures in 15 years. What is the fair price for the bond if the yield is5%?

A.$386.45 B.$481.02 C.$536.39 D.$465.32 E.$520.68