1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which of the following statements is CORRECT? *

A. The bond sells at a price below par.

B. The bond has a current yield less than 10%.

C. The bond sells at a discount.

D. A & C

E. None of the above.

2. J&J Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of $75. The market requires an interest rate of 8% on these bonds. What is the bond's price? *

A. $966.45

B. $925.62

C. $948.76

D. $972.48

E. None of the above.

3. Film Co. non-callable bonds currently sell for $1,150. They have a 10-year maturity, an annual coupon of $100, and a par value of $1,000. What is their yield to maturity? *

A. 5.84%

B. 6.15%

C. 6.47%

D. 7.91%

E. None of the above.

4. Tosh. Inc.'s bonds currently sell for $980 and have a par value of $1,000. They pay a $95 annual coupon and have a 12-year maturity, but they can be called in 3 years at $1,150. What is their yield to call (YTC)? *

A. 13.9%

B. 14%

C. 7.12%

D. 14.24%

E. None of the above.

5. TNT Inc. bonds currently sell for $1,100. They have a 5-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield? *

A. 7.73%

B. 7.50%

C. 7.91%

D. 8.12%

E. None of the above.