1. Describe some instances where it would be a good idea for you to purchase a zero coupon bond instead of a coupon bond? 2. Explain why someone with a large portfolio of fixed income investments would fear inflation? 3. What is the fair price for a bond with a 6% annual coupon and 8 years left until maturity that yields 7%? 4. How much would you pay for a semi-annual 5% coupon bond with 25 years left until maturity that yields 3.50%? 5. What is the yield to maturity of an annual 7% bond that has 8 years left until maturity and costs $1065? 6. What would your yield to maturity be on a semi-annual 3.50% coupon bond that has 10 years left until maturity and costs $986.65? 7. If you purchased a semi-annual 8% coupon bond for $1185.90, that yields 6%, how many years are left before this bond matures?