Question: 1. What is the most we should pay for a bond with a par value of $1000, coupon rate of 7.7% paid semi-annually, and a

1. What is the most we should pay for a bond with a par value of $1000, coupon rate of 7.7% paid semi-annually, and a remaining life of 9 years? The bond is rated BBB, with a yield to maturity of 7.9%. (Round your answer to the nearest penny.) Answer:

2. What is the current yield on a zero coupon bond with a remaining life of 10 years, a yield to maturity of 4.4%, and a par value of $1000? (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34 and state as an annual rate.) Answer:

3.Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in 28 years, has a coupon rate of 6.7% with semi-annual payments. The par value of the bond is $1000, while the current market value equals $934.20. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%) Answer:

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