Problem set 1. Bond A has 9% annual coupon, current yield is 7%, par 1000, 5 year maturity, Compute bond price (intrinsic value) Suppose the market rate increases by 0.5%, find the percentage change in price 1. For a 28% tax bracket, what is the equivalent after tax rate of a 6% corporate yield? 1. For a 28% tax bracket, what corporate taxable yield is equivalent to a 4.5% muni bond rate? 1. (assigned as group work) Price of the house = 150,000. Bank requires a 20% down, 3/1 ARM , initial rate =4%, Expected Adjustment: .25% per year Interest rate cap: 12% in wod 1. Monthly payment during year 1:_ 1. Monthly payment in 37&month:_ 1. Loan balance end of month 48:_