1. Mark has a Treasury bond that has a par value of $30000 and a coupon rate of 8%. The bond has 11 years to maturity. Mark needs to sell the bond and new bonds are currently carrying coupon rates of 7%. For what price should Mark sell the bond in this situation?
2. Chukker Farm Polo has 15 year maturity bonds that were issued six years ago at a coupon rate of 5.6 percent. The bonds make semi-annual payments. If the YTM on these bonds is 5.7 percent, what is the current bond price?
3. A project has the following cash flows, for years 0 through 3 respectively: -27,419, 9,945, 8,572, 10,451. If the required return is 8 percent, what is the profitability index?