1) A $1,000 face value bond currently has a yield to maturity of 4.4 percent. The bond matures in 10 years and pays interest semi-annually. The coupon rate is 5.0 percent. What is the price today of this bond?

2) Best Western has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 5 years, and have a 4.8 percent coupon rate. The current price is quoted at $972. What is the yield to maturity?

3) XYZ has a $1000 Face Value 4% Coupon Bond (paid semi-annually). The bond is selling for $975.82 today and matures in 10 years. (The YTM today is 4.3%)

a What will be the price of the bond in 1 year (the bonds now have 9 years left until maturity) if

the YTM investors demand in 1 year is still 4.3%?

b) What will be the price of the bond in 1 year (the bonds now have 9 years left until maturity) if the YTM investors demand in 1 year is 4.2%?

4) ABC Co wants to raise $2 million for an expansion project. The company wants to raise this money by selling zero coupon bonds with a par value (face value) of $1000 that mature in 10 years. These bonds would be sold with a Yield to Maturity of 6.8% per year with semi-annual compounding. How many bonds must ABC sell in order to raise the $2 million dollars?