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-New series of 10 year bonds -$1000 face value -AA rated yield to maturity -280 basis points above yield -Annual payments 1. If YTM on

-New series of 10 year bonds

-$1000 face value

-AA rated yield to maturity

-280 basis points above yield

-Annual payments

1. If YTM on 10 yr bonds is 2.1%, what coupon rate should I choose if I want to sell at par?

2. If 1500 bonds issued, how much capital will I have from sales?

3. 2 yrs later YTM on 8 yr bonds falls to 1.7%, still 280 points above, what is new price?

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