Problem One. A $1,000 semi-annual bond has a coupon rate of 5%. The bond has fifteen years left until it matures. The current market interest rate equals 5%. Compute the bonds market value today.

Problem Two. You can use the same fact situation as problem one. The only item that has change is current market interest rate equals 8%. Compute the bonds market value today.

Problem Three. A $1,000 semi-annual bond with 10 years to maturity and 7% yield is traded for $960. Find coupon rate of this bond.