1. Ocean's Inc. bonds currently sell for $1,160 and have a par value of $1,000. They pay a $65 annual coupon and have a 8-year maturity, but they can be called in 6 years at $1,070. What is their yield to maturity (YTM)? * O A) 4.93% B) 4.11% O C) 6.5% O D) 7.11% O E) 7.93% 2. LSP Inc.'s bonds currently sell for $1,250. They pay a $120 annual coupon, have a 15- year maturity, and a $1,000 par value, but they can be called in 8 years at $1,050. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is the difference between this bond's YTM and its YTC?* OA) % A) 8.98926% B) 8.11965% C) 0.86961% OD%) D) (0.86961%) O E) None of the above 3. Frank, an angel investor, planning to invest in QNB bond. The bond has a face value of $1000, 6.5% coupon rate (paid semi- annually), and the still has 5 years to maturity. If the difference between the bond yield to maturity and coupon rate is 3%, what is the bond's price?* O A) $808.05 O B) $867.06 C) $750 D) $607.575 O E) None of the above