1. Kiss the Sky Enterprises has bonds on the market making annual payments, with 16 years to maturity, and selling for $850. At this price, the bonds yield 7.0 percent. What must the coupon rate be on the bonds?
2. Grohl Co. issued 13-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price?
3. What financial asset do you get when you take a long position on a t-note futures contract?