1. a Firms bonds have a maturity of 16 years with a $1000 face value, a 7% semiannual coupon, are callable in 5 years at $1090, and currently sell at a price of $1,147. what is their Yield to call (YTC)?

a. 7.00%

b. 5.60%

c. 3.75%

d. 5.91%

e. 5.22%

QUESTION 7 You have $45,333.11 in a brokerage account, and you plan to deposit an additional $2,500 at the end of every year until your account totals $100,000. You expect to earn 8 percent annually on the account. How long will it take to reach your goal? a. 7 years Ob. 4 years O c. 6 years O d. 5 years e. 3 years LECTION M. Neither QUESTION 6 The real risk-free rate is 1 percent, and inflation is expected to be 4 percent next year and 6 percent for the following 3 years. Asume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities? a. 7.00% b. 11.00% G 1.00% d. 6.00% e. 5.00%