Show work for all 3 questions in a word document.
Question 1: A bond has a $1000 face value, a market price of $1,115, and pays interest payments of $90 every year. What is the coupon rate?
Question 2: A 7 percent bond has a yield to maturity of 6.75 percent, 10 years to maturity, a face value of $1000, and semiannual interest payments. What is the amount of each coupon payment payment?
Question 3: Consider a zero-coupon bond with a $1000 face value and 10 years left until maturity. If the bond is currently trading for $459, then the yield to maturity on this bond is closest to:
A) 7.5%
B) 10.4%
C) 9.7%
D) 8.1%