A.

Bond E has the following features:

Face value = $1,000, Coupon Rate = 7%,

Maturity = 5 years, Yearly coupons

The market interest rate is 3.35%

If interest rate remains at 3.35% for the life of the bond (i.e., 3.35 years), what is the price of Bond E in year 3?

B.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 6%,

Maturity = 10 years, Yearly coupons

The market interest rate is 5.10%

What is the current yield for bond A from today to year 1?

Calculate your answer to 2 decimal places (e.g., 5.23)

C.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 5%,

Maturity = 9 years, Yearly coupons

The market interest rate is 7.34%

If interest rates remain at 7.34%, what is the percentage capital gain or loss on bond A if you sell the bond in year 1?

State your answer to 2 decimal places (e.g., 3.56, 0.29)

If there is a capital loss make sure to include a negative sign in your answer (e.g., -0.23)