For each problem, you first will have to calculate the coupon amount. For example, if a bond has a par value of $1,000, with a coupon rate of 7%, then the coupon amount is $1,000 x .07 = $70.

1. Five years ago, Atlas Industries sold a bond with a par value of $1,000, with 30 years to maturity, and with a coupon rate of 6.0%, paid annually. Today, with 25 years remaining to maturity, the yield to maturity is 8.0%. What is the price of this bond?

2. Ten years ago, Excelsior Manufacturing sold a 30-year bond issue, with a par value of $1,000, and a coupon rate of 9%, paid annually. Today, with

20 years remaining until maturity, the yield to maturity is 5.0%. What is the price of this bond?

3. As interest rates go ____, bond prices go ___; and as interest rates go ___, bond prices go ____.

4. Over the life of bond, the par/face value, the coupon, and the coupon rate never change. TRUE or FALSE?

5. Nuclear Engineering Associates Inc. has a bond outstanding with an initial maturity of 20 years and a par value of $1,000, which bond now sells for $891.68. The bond has a coupon rate of 5.0%, paid annually, and now has 18 years remaining to maturity. What is the yield to maturity of this bond?

6. Ten years ago, LaSalle Global Inc. issued a 20-year, $1,000 par value bond, with a coupon rate of 6.00%, paid annually. Today, the bond has ten years remaining to maturity, and the bond is currently selling in the market for $1,162.65. What is the bond's yield to maturity (YTM)?