1) A $5,000 bond with a coupon rate of 6.1% paid semiannually has eight years to maturity and a yield to maturity of 6.9%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

A.rise by

$ 242.79

B.

fall by

$ 242.79

C.

rise by

$ 339.91

D.

fall by

$ 291.35

2) A bond has three years to maturity, a $2,000 face value, and a 6.3% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,845?

A.13.14%

B.9.39%

C.11.26%

D.7.51%

3) The Sisyphean Company has a bond outstanding with a face value of

$5,000 that reaches maturity in nine years. The bond certificate indicates that the stated coupon rate for this bond is 8.2% and that the coupon payments are to be made semiannually.

Assuming that this bond trades for

$5,420, then the YTM for this bond is closest to:

A.6.93%

B.5.5%

C.8.31%

D.9.7%