5. Compute the value of a bond with a typical $1000 par value, a coupon rate of 2.25% with semi-annual payments, and a 30-year maturity if investors required a yield to maturity of 1.08% on the bond (or 108 basis points).

6. Compute the value of the bond in b.5 if investors suddenly required a yield to maturity of 0.036% on the bond (or 360 basis points).

7. Compute the value of the bond in b.6 if there is a change of 48 basis points in the required yield due to a fall in the default risk of the debtor (where 1 basis point=0.01%, so the change is 0.48%)

8. Compute the value of the bond in b.6 if the bond is callable (without a make-whole call feature) and there is a change of 36 basis points in the required yield due to a rise in the chance of the debtor prepaying the principal of the bond (where 1 basis point=0.01%, so the change is 0.36%)

9. Compute the value of a bond that is identical to the bond in d.6 except that it is convertible into common stock at a fixed conversion ratio and therefore has a required yield to maturity that is 0.28% different from that in b.6 (i.e., different by 28 basis points).

10. Compute the value of a municipal bond that has characteristics identical to the bond in d.6 (including the same credit rating and default risk) and has a required yield to maturity that is 0.12% different from that in b.6 (i.e., different by 12 basis points).