(a) What is the price of an annual coupon bond whose par value is 1,000, that pays interest of 7%, has a maturity of eight years, and whose yield to maturity is 6.5%?

(b) What is the yield to maturity of a bond whose price is 1,200, whose par value is 1,000, that pays 6% interest semi-annually, and that has 9 years to maturity?

(c) If a zero-coupon bond will mature in 5 years, its par value is 1,000, and its price is 825, then what is its yield to maturity?

(d) A 1,000 par-value bond with a 15-year maturity was issued 4 years ago. It pays 6.5% interest, and the yield-to-maturity on similarly risky bonds is currently 2.75%. Investors expect the firm to call the bonds in 4 years, despite the requirement that the firm will need to pay 10% of the par value as a penalty for doing so. Find the price of the bond.