1) Maria bought a 20-year, 7.2% annual coupon bond at a market price of $921.45. The face value of the bond is $1,000. What is the bond'syield to maturity?

Select one:

a) 7%

b) 8.5%

c) 8%

2) Continued with previous question.A year later, the market yield for the same bond falls by 0.8 percentage point. The bond price at this point should be $ ____________. (do not add thousand separator)

3) If Maria sells the bond, what is her capital gain ?

Select one:

a) 7.2%

b) 8.52%

c) 8%

4) Continued with previous questions. What Maria's holding period return on the bond?

Select one:

a) 8.52%

b) 16.34%

c) 7.2%

d) 0%