1.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 3%,

Maturity = 9 years, Yearly coupons

The market interest rate is 5.68%

What is the current yield for bond A from today to year 1?

Calculate your answer to 2 decimal places (e.g., 5.23)

2.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 8%,

Maturity = 4 years, Yearly coupons

The market interest rate is 4.44%

If interest rates remain at 4.44%, what is the percentage capital gain or loss on bond A if you sell the bond in year 1?

State your answer to 2 decimal places (e.g., 3.56, 0.29)

If there is a capital loss make sure to include a negative sign in your answer (e.g., -0.23)

3.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 7%,

Maturity = 9 years, Yearly coupons

The market interest rate is 4.58%

If interest rates remain at 4.58%, what will the price of bond A be in year 1?