use the following corporate bond quote information to answer the questions that follows. since this is a corporate bond, assume the company makes semi-annual coupon payments and also assume the bond matures on today's date in its maturity year.

Bond Cur.Yld. Vol. close Net Chg.

Doh! 9 1/2 18 9.0 5 105 1/2 -1/4

Doh! 8 1/2 21 9.4 10 90 1/4 -1/2

1. how much would each bond cost you to buy today if its face value is $1000?

2.how much would each bond cost you yesterday if its face value were $1000?

3. what is each bond's yield to maturity?

4. what is each bond's expected capital gains yield today?

5. now imagine you purchased each bond today at the current price. a year later the yield to maturity for each bond falls by one percentage point. what is your total rate of return for each bond?

6.now imagine same scenario in #5 except the yield to maturity for each bond increases one percentage point for each bond a year later. what is your total rate of return for each bond?

7. which bond do you prefer in #5 and what type of risk are you more exposed to if you choose this particular bond?

8. which bond do you prefer in #6 and what type of risk are you more exposed to if you choose this particular bond?