1 .Consider a bond paying an annual coupon of $80 with a face value of $1,000. Calculate the yield to maturity if the bond has 20 years remaining to maturity and is priced at $1,200. What would be the holding period yield if the bond is held for 15 years and sold at $1,100?
2. A Eurodollar futures price changes from 96.76 to 96.80. What is the gain or loss to an investor who is short three contracts?
3. Clarice has leased an auto for 2 years at $450/month. If money is worth 3.5%/year compounded monthly, what is the equivelant cash payment(present value) of this annuity?