1) SandhillCorp is issuing a 10-year bond with a coupon rate of13percent. The interest rate for similar bonds is currently7percent. Assuming annual payments, what is the value of the bond?

2) JasonAllenjust received a cash gift from his grandfather. He plans to invest in a five-year bond issued byBlossomCorp. that pays an annual coupon rate of5.0percent. If the current market rate is8.50percent, what is the maximum amountJasonshould be willing to pay for this bond?

3) Crane, Inc., has issued a three-year bond that pays a coupon rate of6.6percent. Coupon payments are made semiannually. Given the market rate of interest of4.8percent, what is the market value of the bond?

4) CraneInc. has seven-year bonds outstanding that pay a13percent coupon rate. Investors buying these bonds today can expect to earn a yield to maturity of6.450percent. What is the current value of these bonds? Assume annual coupon payments.

5) NancyJacksonis interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is11.8percent. Assume annual coupon payments.What is the currentvalue of this bond?