1. XYZ sold a 30 year bond. The bonds carry a coupon of 10.85% and pay interest annually (once a year). It is now 12 years later. The current yield on the bonds is 9.49%. What is the current market price if the bonds?

2. In periods of rising interest rates, it is in the best interest of the investor to purchase _____ bonds?

3. You purchased XYZ bonds exactly a year ago for $1,075. During the latest year you received $85 in interest on the bonds. What was your yield on the bonds?

4. A $1,000 par value bond with a 12% coupon rate currently selling for $825 has a current yield of