1. An annual bond has a face value of $1,000.00, makes an annual coupon payment of $12.00 per year, has a discount rate per year of 4.37%, and has 8 years to maturity. What is price of this bond? 2 A 4 Yar Treasu

Savita

K Suppose a five-year, $1,000 bond with annual coupons has a price of $895.56 and a yield to maturity of 6.4%. What is the bond's coupon rate? *** The bond's coupon rate is %. (Round to three decimal places.)

1. A three-year bond with a $1,000 face-value and 10% coupon rate is sold for $1,000 today (Year 1).  If one year later (Year 2) the market interest rate decreases by 5%, then this bond will have a market price of $ ____ (round UP to the nearest integer) next year (Year 2).   2. True or False? The current interest rate on a 10-year coupon bond with face value = $1,000 and annual coupon rate = 3.25% is2.42%.  This implies the buyer of the bond will receive a $24.2 payment from the bond issuer every year before maturity while holding the bond.   3. A three-year bond with $1,000 face-value and 10% coupon rate is sold for $1,000 today (YEAR 1).  If one year later (Year 2) the market interest rate increases by 5%, then this bond will have a market price of $ ________ (round UP to the nearest integer) then (Year 2).