Question 1:

a) A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985. What is the yield to maturity?

b) Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? (Please see (a) for details)

c) Nungesser Corporation's outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 8 years to maturity, and a YTM of 8.5%. What is the bon's price?

d) A firm's bonds have a maturity rate of 10 years with a $1,000 face value, an 8% semiannual coupon, are callable in 5 years at $1,050, and currently sell at a price of $1,100. What's the nominal yield to maturity?

e) What's the nominal yield to call? (Please see (d) for details)