1. What is the value of a semi-annual interest bond with 8 years to maturity, 5% annual coupon, $1,000 par value, and currently priced to yield 4.3%
2. Suppose that you are interested in buying a bond that pays interest semi-annually. It has an annual coupon of 6% with interest payable on June 15th and December 15th. The bond accrued interest is determined using a 30/360 day count street convention. If the bond is currently priced at $1,050, what is the invoice price for the bond using a settlement date of April 13, 2016? (Show your work)
3. You have $250,000 invested in bond A which has a modified duration of 3 and $175,000 invested in bond B which has a modified duration of 12. If interest rates rise by 50 basis points, your portfolio would gain/lose approximately how much money? (State gain or loss and the dollar amount of change). SHOW ALL WORK