Please answer the questions below, show working process

Chapter 14 6. Which Security has a higher effective annual interest rate? a. A 3-month T-bill selling at $97,645 with par value $100,000. b. A coupon bond selling at par and paying a 10% coupon semiannually. 8. Consider a bond with a 10% coupon and a yield to maturity =8%. If the bond's yield to maturity remains constant, then in 1 year, will the bond price be higher, lower or unchanged? 11. A 20-year maturity bond with par value of a $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is: a. $950. b. $1,000. c. $1,050. 12. Repeat problem 11 using the same data, assuming that the bond makes its coupon payments annually. Why are the yields you compute lower this time? 23. A 2-year bond with par value $1,000 making annual coupon payments of $100 is priced at $1,000. What is the yield to maturity of the bond? What will be the realized compound yield to maturity if the 1 year interest rate next year turns out to be (a) 8%, (b) 10%, (c) 12%? Assume that the government bonds with differently maturities and coupon rates are given as follow: Maturity Price Coupon rate 1 99.10 1% 2 99.50 1.5% 3 100.00 2% 4 99.50 2% 5 99.10 3% 6 98.00 3% A) Find prices of $1 in years 1 through 6. B) Find all the forward interest rates for between years 1and 2, years 2and 3 etc. all the way to year 6. C) What would be your forecast of HPR the 6 year bond between year 2 and 3 ? D) There is a project that you are contemplating to pursue with the following sure cash flows: year Cash flow 1 -100 2 200 3 100 4 200 5 100 How much is the maximum that you are willing to invest for this project? 6 200 Chapter 15 (Questions 7, 8, 9, 17)