Solve the following problems and answer the last question. Example problems can be found on the "Bond Valuation Example" tab below. Explain an appropriate formulas using the supplied values in the corresponding cells so Excel can calculate the answer.

1. Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of 7%. Compute the price again if interest payments are paid semi-annually (solve using semi-annual compounding). Par value is $1000.

2. A 6.50% coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity [interest rate] is the bond offering? Assume interest payments are paid semi-annually, and solve using semi-annual compounding. Par value is $1000.

3. You have just paid $1,135.90 for a bond, which has 10 years before it, matures.It pays interest every six months. If you require an 8% return from this bond, what is the coupon rate on this bond? Par value is $1000.