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1. Ten-year bonds have a coupon rate of 6 percent. Face value is $1,000. The bonds make semiannual payments. If the YTM on these bonds is 9 percent, what is the current bond price? (3)

2. Ten-year bonds have a coupon rate of 8 percent. Face value is $1,000. The bonds make semiannual payments. If these bonds currently sell for $875.38, what is the YTM? (4)

3. Bonds have 15 years to maturity, a YTM of 8 percent, and a current price of $827.08. The bonds make semiannual payments. Face value is $1,000. What is the coupon rate on these bonds? (4)

4. Bond A and bond B have 6 percent coupons, make semiannual payments, and are priced at face (par) value, $1,000. Bond A has 5 years to maturity whereas bond B has 20 years to maturity.If interest rates suddenly rise by 1 percent, what is the percentage change in the price of the bonds?

	New Price	%change
A
B