$1.$ A bond that matures in $8$ years has a par value of $$1000$ and an annual coupon payment of $$70.$ Market interest rates are $9\%.$ What is the price of the bond? Is it a premium or discount bond?

$2.$ A bond that matures in $12$ years has a par value of $$1000$ and an annual coupon rate of $10\%.$ The market interest rate is $8\%.$ What is its price? Is it a premium or discount bond?

$3.$ Hartwell corporation$$s bonds have a $20-$year maturity, an $8\%$ semiannual coupon, and a face value of $$1000.$ The going nominal annual interest rate is $7\%.$ What is the bond$$s price?

$4.$ Which of the following bonds have the most price risk? Explain your answer

$5.$ The Henderson Company$$s bonds currently sell for $$1,275.$ They pay a $$120$ annual coupon, have a $20-$year maturity, and a par value of $$1000,$ but they can be called in $5$ years at $$1,120.$ What are the Yield to Maturity?

$6.$ Harrimon Industries bonds have $4$ years left to maturity. Interest is paid annually, and the bonds have a $$1,000$ par value and a coupon rate of $9\%.$ The fair market interest rate for such a bond is $12\%.$ At which of the following prices would you buy the bond?

i$.$ $$850$

ii$.$ $$905$

iii. $$910$

Group of answer choices

i$.$ only

ii$.$ only

iii. only

i$.$ and ii$.$

i$.$ and iii.

All Prices

$7.$ The Henderson Company$$s bonds currently sell for $$1,275.$ They pay a $$120$ annual coupon, have a $20-$year maturity, and a par value of $$1000,$ but they can be called in $5$ years at $$1,120.$ What is the Yield to Call?

$8.$ A bond that matures in $12$ years has a par value of $$1000$ and an annual coupon rate of $10\%.$ The market interest rate is $8\%.$ This bond is a premium bond.

$9.$ Last year a firm issued $20-$year, $8\%$ annual coupon bonds at a par value of $$1000.$ Suppose that $1$ year after issue the going market interest rate is $10\%.$ What would the price of the bonds be$?$

$10.$ Harrimon Industries bonds have $4$ years left to maturity. Interest is paid annually, and the bonds have a $$1,000$ par value and a coupon rate of $9\%.$ What is the YTM at a current market price of $$829?$

$11.$ Harrimon Industries bonds have $4$ years left to maturity. Interest is paid annually, and the bonds have a $$1,000$ par value and a coupon rate of $9\%.$ What is the YTM at a current market price of $$1,104?$

$12.$ Harrimon Industries bonds have $4$ years left to maturity. Interest is paid annually, and the bonds have a $$1,000$ par value and a coupon rate of $9\%.$ You would pay $$829$ for this bond if you thought that a $$fair market interest rate for such bonds was $12\%.$

Group of answer choices

True

False