1. What is the yield to maturity of the following bond? The bond sells for $1,082.00, will mature at $1,000 in 7 years, pays a coupon rate of 5%, with semiannual payments.
2. Your bank plans to make a $20,000 loan to a customer which will have three annual installment payments. Your bank will charge 6% APR on the loan. What is the duration of this loan at the time of its origination?
3. What is the price of the following bond? The bond will mature in 4 years, pays a coupon rate of 6%, pays interest semi-annually, will mature at $1,000, and you require a 3.5% rate of return.