1) A company releases a five-year bond with a face value of $1000 and coupons paid semiannually. If market interest rates imply a YTM of 10%,which of the following coupon rates will cause the bond to be issued at a premium?

A) 8% B) 12% C)7% D) 10%

2)

The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 8years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.

Assuming the appropriate YTM on the Sisyphean bond is 10.5%, then this bond will trade at

A.a discount.

B.a premium.

C.par.

D.none of the above