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(1) ABC Enterprises bonds currently sell for $1,050. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. Compute their YTM, coupon rate, and current yield.

(2) Which of the following non-callable bond has the greatest interest rate risk, i.e. the greatest sensitivity of bond price to interest rate increases?

	Maturity	Coupon Rate
a. short-term low coupon bond	1 year	Zero
b. short-term high coupon bond	1 year	10%
c. long-term low coupon bond	30 years	Zero
d. long-term high coupon bond	30 years	10%