Problem 2 A zero coupon bond with face value of $1,000 and maturity of six years sells for $786.22 What is its yield to maturity? What will happen to its yield to maturity if its price falls immediately to $735? Problem 3 A bond with an annual coupon rate of 5.8% sells for $980, what is the bond's current yield? Problem-4 Consider a bond paying a coupon rate of 8% per year semiannually when the market interest rate is only 4% per half-year. The bond has four years until maturity. a) Find the bond's price today and six months from now after the next coupon is paid. b) What is the total rate of return on the bonds? Problem 5 A 25-year maturity bond with a par value of $1,000 makes semiannual coupon payments t the bond price is: coupon rte of 8.5%. Find the bond equality and effective annual yield of the bond if ) $960 b) $1.000 c) $1,080 Problem 6 Consider a bond paying a coupon rate of 8% per year semiannually when the market interest rate is only 4% per half-year. The bond has four years until maturity. Find the bond's price today and six months from now after the next coupon is paid. a) b) What is the total rate of return on the bonds