1. If a bond with an even value of $ 5,000 has a coupon rate of 11 percent, then the coupon payment each year is $? 2. An $ 8,000 coupon bond with an annual coupon payment of $ 400 has a coupon rate of: to. 5 percent. b. 40 percent. c. 8 percent. d. 10 percent. 3. In which of the following situations would you prefer to make a loan? to. The interest rate is 15 percent and the expected inflation rate is 10 percent. b. The interest rate is 5 percent and the expected inflation rate is 2 percent. c. The interest rate is 10 percent and the expected inflation rate is 8 percent. d. The interest rate is 13 percent and the expected inflation rate is 15 percent. 4. With an interest rate of 6 percent, the present value of $ 100 received one year from now is approximately: to. $ 100. b. $ 106. c. $ 92 d. $ 94 5. When the lender provides the borrower with an amount of funds that must be repaid to the lender on the due date, along with an additional payment for interest, it is called: to. discounted loan. b. simple loan. c. fixed payment loan. d. mortgage loan. and. future loan. 6. If a 5 percent coupon bond initially sells for $ 1,000 and sells for $ 1,100 a year later. The return one year later is percent. 7. The yield to maturity of a perpetual bond that pays $ 175 per year and sells for $ 1,000 is: to. 17.5 percent. b. 5 percent. c. 20 percent. d. 10 percent. and. 15 percent