1. Capital market instruments: Bonds Which of the following are typical bond maturities? Check all that apply. 9 years 14 years 20 years 27 years Which of the following are characteristics of bonds? Check all that apply. If an investor does not hold the bond from issuance to maturity, then the yield received by the investor may differ from the yield incurred by the issuer. A bond's yield to maturity inciudes the transaction cost associated with issuing the bond. Their maturities are normally between 10 years and 30 years. The U.S. Treasury issues federal agency bonds, federal agencies issue Treasury bonds, state and local governments issue corporate bonds, and corporations issue municipal bonds. Suppose Caroline pays $940, at issuance, to purchase a 10 -year bond with a par value of $1,000 and a 7 percent coupon and holds the bond to maturity, What is her yield to maturity? 7.10% 7.89% A bond's yield to maturity includes the transaction cost associated with issuing the bond. Their maturities are normally between 10 years and 30 years. The U.S. Treasury issues federal agency bonds, federal agencies issue Treasury bonds, state and local governments issue corporate bonds, and corporations issue municipal bonds. Suppose Caroline pays $940, at issuance, to purchase a 10 -year bond with a par value of $1,000 and a 7 percent coupon and holds the bond to maturity. What is her yield to maturity? 7.10% 7.89% 8.13% 8.52%