1. Effective annual yield (annual vs. semiannual bond) You are considering a 10-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 8.72%, how much should you be willing to pay for the bond?

2. Total return for 1-year bond investment Last year Janet purchased a $1,000 face value corporate bond with an 12% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 12.99%. If Janet sold the bond today for $985.41, what rate of return would she have earned for the past year?

3. Price for bond at constant YTM Bond X is noncallable and has 20 years to maturity, a 9% annual coupon, and a $1,000 par value. Your required return on Bond X is 10%; and if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5 years the yield to maturity on a 15-year bond with similar risk will be 7%.

How much should you be willing to pay for Bond X today?

4. YTC for semiannual bond A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 6 years at $1,058, and currently sell at a price of $1,111.29.

What is their nominal yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places. %

What is their nominal yield to call? Do not round intermediate calculations. %