1.A. Complete the table below by finding the market price or the YTM. Assume Steves coupon payments are made semi-annually.

	Coupon Rate	Years to Maturity	YTM	Market Price
Bond A	9.5%	16	6%
Bond B	6%	7		$898.75

1.B. Steve has two bonds outstanding. Bond A was issued 20 years ago at a coupon rate of 8%. The other, Bond B, was issued 8 years ago at a coupon rate of 8%. Both bonds were originally issued as 30-year bonds with coupon payments made semi-annually. The current market rate (YTM) is 12%.

1. What is the current price of Bond A?
2. What is the current price of Bond B?

1. C. Steve issued 25 year bonds 7 years ago with a coupon rate of 8.2%. Currently, the bonds sell at a price of $925.

1. Are these bonds discount, par value, or premium bonds?
2. Assuming semi-annual coupon payments, what is this bond's yield to maturity (YTM)?
3. If the YTM were to increase by one percentage point, what would you expect to happen to the price of the bond?
4. One year later the YTM increases by 1%, by what percentage would the price of the bond change as a result of this 1% increase in the YTM?