2. Compute the value of a bond with a typical $1000 par value, a coupon rate of 2.25% with semi-annual payments, and a 10-year maturity if investors required a yield to maturity of 1.08% on the bond (or 108 basis points, where 1 basis point=0.01%).

3. Compute the value of the bond in b.2 if investors suddenly required a yield to maturity of 0.48% on the bond (or 48 basis points, where 1 basis point=0.01%).

4. Compute the value of the bond in b.2 if investors suddenly required a yield to maturity of 3.60% on the bond (or 360 basis points, where 1 basis point=0.01%).