5. A bond is currently selling at $1,034.5. This bond has a yield-to-maturity (market interest rate) of 6.36% and a duration of 8. If the market interest rate decreases by 40 basis points, calculate the new price of the bond. 11

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A Treasury bond has a face value of $100, a maturity of 20 years, a coupon of 4%, and pays the coupon every six months, at the end of each six month period. The price of the bond is $105. What is the yield of this bond? a. 3.65% b. 1.8% C. 1.7% d. 3.8%

5. A bond is currently selling at $1,034.5. This bond has a yield-to-maturity (market interest rate) of 6.36% and a duration of 8. If the market interest rate decreases by 40 basis points, calculate the new price of the bond. 11

9. A bond has a time-to-maturity of 8 years, a coupon rate of 5%, is currently selling for $1021.35. What is the bond's yield if it pays interest annually? A. 4.6740%. B. 5.6874%. C. 3.2654%. D, 4.0258%.

8. A bond has just been issued. The bond has an annual coupon rate of 12% and coupons are paid annually. The bond has a face value of $1,000 and will mature in 20 years. The bond’s yield to maturity is 14%. a.Using Excel’s Data Table feature to construct a Two-Way Data Table to demonstrate the impact of the coupon rate and the time to maturity on the bond’s duration using: i. Coupon Rates of 0%, 6%, 12%, and 18%.ii. Maturities of 5 years, 10 years, 15 years, and 20 years. b. What duration principles are demonstrated in this table? c.How could investors apply these duration principles to make bond investment decisions?

A bond has the following terms: Principal amount $1,000 Semi-annual interest $45 Maturity 15 years a. What is the bond's price if comparable debt yields 11%? b. What would be the price if comparable debt yields 11% and the bond matures after ten years? c. What would be the bond's price in a. and b. if interest rates declined to 8 % ?