1. Two bonds have a coupon rate of 4.25 percent, semi-annual payments, face values of $1,000, and yields to maturity of 5.1 percent. Bond S matures in 4 years and bond L matures in 8 years. What is the difference in the current prices of these bonds?
2. You own a bond that pays semiannual interest payments of $38. The bond is callable in 2 years at a premium of $76. What is the callable bond price if the yield to call is 7.9 percent?
3. Two bonds have a coupon rate of 5.25 percent, semi-annual payments, face values of $1,000, and yields to maturity of 6.1 percent. Bond S matures in 5 years and bond L matures in 10 years. What is the difference in the current prices of these bonds?