14.A company has 5-year bonds outstanding that pay an 7.5 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 14.4 percent p.a.. What should the company's bonds be priced at today? Assume annual coupon payments and a face value of $1000. (Rounded to the nearest dollar)

Select one:

a. $765

b. $1279

c. $638

d. $1959

15.Jack is planning to buy a 9-year bond with semi-annual coupons and a coupon rate of 4.3 percent p.a. The face value is $1,000. Given an annual yield of 6.4 percent, what is the bonds current price? (to the nearest cent)

Select one:

a. $858.00

b. $1154.03

c. $572.17

d. $859.62

16.Which ONE of the following statements is NOT true?

Select one:

A. Long-term bonds have lower price volatility than short-term bonds.

B. As interest rates decline, the prices of bonds increase; and as interest rates rise, the prices of bonds decline.

C. All other things being equal, short-term bonds are less risky than long-term bonds.

D. Interest rate risk increases as maturity increases.

17.Jill wants to buy 5-year zero coupon bonds with a face value of $1,000. Her required return on the bonds is 6.9 percent p.a. Assuming annual compounding, what would Jill be prepared to pay for the bond? ( to the nearest cent )

Select one:

a. $979.44

b. $1020.83

c. $716.33

d. $847.89