1. You have a $1,000, 8% bond that matures in five years and pays interest annually. You want to sell it, but the current interest rate on a similar investment that matures in five years is now paying...

1. You have a $1,000, 8% bond that matures in five years and pays interest annually. You want to sell it, but the current interest rate on a similar investment that matures in five years is now paying 4% interest. What is the current value of your bond?

2. You buy a $10,000 Treasury note that matures in seven years at 5% interest. What will the interest payments be, and how often will you receive interest?

3. If you had $5,000 to invest in bonds and your intent was to ladder the bond investments at segments of $1,000 every year, for what period of time would each bond be set?