1. What is the coupon of a bond selling at par having in mind that interest rates are fixed at 12 percent?
2. A consol is selling at premium with a coupon rate of 12 percent. How much would you pay for it if you knew that interest rates are 3 percent? What would have been the price if coupon were paid every sixth months?
3. What is the maximum price of a fixed-coupon bond paying quarterly with a coupon rate of 10 percent, interest rate of 15 percent, and a maturity of seven years.
4. What is the coupon rate of a consol bought at 900 USD knowing that interest rate is 10 percent?