The Gilzene Garments (GG) issued a series of new bonds on October 1, 2007. The bonds were sold at par ($1,000), had a 10% coupon and matured in 15 years. Bond coupon payments are paid annually on September 30.

1) On October 1, 2008, the bonds were selling for $1000. Determine the yield-to-maturity.

2) On October 1, 2010, investors required a rate of return of 12% on bonds with characteristics similar to those of the GG series. Calculate the market value of a GG bond.

3) On October 1, 2014, the GG bonds were selling for $1020. Calculate the yield-to-maturity of the bonds.