1. Think of a major, well-known business; a prominent not-for-profit organization; and a state, provincial, or national government. For each, describe in two or three sentences a strategically appropriate investment project that the organization might be evaluating—something that you think would make sense for that organization in its current environment. Explain your reasoning.
2. If you purchase a $1000 par value bond for $1025 that has a 6 3/8% coupon rate and 8 years until maturity, what will be your annual return?
3. Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make annual payments. If the bond currently sells for $1063.24, what is its YTM? Answer with 4 decimals (e.g. 0.0123).