2 3. 5 1. If comparable bonds are currently yielding 3.5%, what coupon rate should a bond have if the company wishes to issue it at par? 2. A 7% annual coupon bond has a YTM of 8% and has 5 years until maturity. What is the quoted price if the par value is $5,000? 3. If the real interest rate is 2% and expected inflation is 15%, what is the approximate nominal interest rate? 4. If the real rate of return is 2.5% and the expected inflation is 4%, what is the approximate real interest rate? 5. Bond A has an annual coupon of 6% and bond B has an annual coupon of 9%. Both have 7 years until maturity. The market demanded interest rates for these bonds moves from 4,5% to 5.5%. What is the price of bond B after the interest rate change