1. Calculate the price of a 11.2 percent coupon bond with 16 years left to maturity and a market interest rate of 6.8 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Is this a discount or premium bond?
2. A 8.20 percent coupon bond with 16 years left to maturity is priced to offer a 8.9 percent yield to maturity. You believe that in one year, the yield to maturity will be 8.5 percent. What is the change in price the bond will experience in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
3. A 6.95 percent coupon bond with 16 years left to maturity is offered for sale at $1,035.30. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)