1. What is the yield to maturity on a bond that has a price of $1,000 and pays $75 a year forever?
2. What is the yield to maturity on a one-year discount bond with a face value of $5,000 for which we paid $4,950?
3. What would the rate of return be on a bond bought for $950 and sold one year later for $850? The bond has a par value of $1,000 and a coupon rate of 8.8%