Suppose a 10-year, $1,000 bond with an 8.3% coupon rate and semi-annual coupons is trading for a price of $1,034.76.

a. What is the bond's yield to maturity (expressed as an APR with semi-annual compounding)?

b. If the bond's yield to maturity changes to9.3% APR, what will the bond's price be?

Q2

The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value):

Maturity (years)	1	2	3	4	5
Price (per $100 face value)	$95.51	$91.05	$86.53	$81.70	$76.66

a. Compute the yield to maturity for each bond.

b. Plot the zero-coupon yield curve (for the first five years).

c. Is the yield curve upward sloping, downward sloping, or flat?