Q. Jackson Corporations bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value and the coupon interest rate is 8%. The bonds have a yield to maturity of 9%. Illustrate what is the current market price of these bonds?

Wilson Wonders bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value and the coupon interest rate is 10%. The bonds sell at a price of $850. Illustrate what is their yield to maturity?

The real risk-free rate is 3% and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.3%. Illustrate what is the maturity risk premium for the 2-year security?