Question 1 Compute the price of a 4.8 percent coupon bond with 12 years left to maturity and a market interest rate of 6.2 percent. (assume interest payments are semi annual) is this a discount or premium bond.

Question 2 A client in the 35 percent marginal tax bracket is comparing a municipal bond that offers a 4.5 percent yield to maturity and a simlar risk corporate bond that offers a 6.45 percent yield. Which bond will give the client more profit after taxes?

Question 3 Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6.70 percent.

Question 4 A 5.25 percent coupon bond with 10 years left to maturity can be called in five years. The call premium is one year of coupon payments. It is offered for sale at 1,050. What is the yield to call of the bond? (Coupon payments are semi-annual.)