1. Determine both the current yield and the approximate yield to maturity for a $250,000 coupon bond with a 5.5%coupon rate selling for $236,600 and maturing in 12 years.

2. A perpetuity with a market price of $24,255 paying $950 annually has a market interest rate of

3. What was the % return on a 20-year, 6.2%, $100,000 coupon bond that was purchased one year ago at par and just sold for $98,133?

4. Determine the nominal rate you would have to be paid on a 15-year municipal bond to be indifferent between it and a 15-year corporate bond if the corporate bond has a nominal 6.28% yield. Assume you are in a 39.6% federal and 8.7% state tax bracket and inflation is expected to be 1.75%.