1A) Compute the yield to maturity for a zero coupon bond with a maturity of 13 years and a face value of $1000. The bond is selling for $594.06. (Assume annual discounting.) (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34)

1B) Your business manager forwards the following information to you. Your businesses earned a real rate of return of 4.4% last year and inflation for the same period was 1.6%. What was your nominal rate of return? (Note: nominal rates of return can be positive or negative.) (Use the exact method rather than the approximation method here.) (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34.)

1C) What is the most we should pay for a bond with a par value of $1000, coupon rate of 7.4% paid semi-annually, and a remaining life of 19 years? The bond is rated BBB, with a yield to maturity of 6.7%. (Round your answer to the nearest penny.)

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