1. An analyst observes a 5-year, 10% semiannual-pay bond. The face value is $1,000. The analyst believes that the yield to maturity on semiannual bond basis should be 15%. Based on this yield estimate, the price of this bond would be:

A. $828.40

B. $1,189.53

C. $1,193.04

D. $1,180.02

E. None of the above.

2. A bond that matures in 6 years sells for $950. The bond has a face value of $1,000 and a 5.5% annual coupon. What is the bonds current yield?

A. 5.50%

B. 6.00%

C. 5.79%

D. 6.25%

E. None of the above.

3. A bond that matures in 6 years sells for $950. The bond has a face value of $1,000 and a 5.5% annual coupon. What is the bonds yield to maturity, YTM?

A. 5.50%

B. 5.79%

C. 6.00%

D. 6.49%

E. None of the above.

4. Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)?

A. 6.63%

B. 6.98%

C. 7.35%

D. 7.37%

E. None of the above.