1) Suppose a ten-year bond with semiannual coupons has a price of $1,071.06, a face value of 1000 and a yield to maturity of 7% (expressed as an APR with semiannual compounding). This bond's coupon rate is closest to: A) 3.5% B) 6.0% C) 7.0% D) 8.0% 2) Which of the following statements is FALSE? A) If the bond trades at a discount, and investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for the bond. B) Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at, or very near to, par. C) Coupon bonds always trade for a discount. D) At any point in time, changes in market interest rates affect a bond's yield to maturity and its price. 3) If a bond is currently trading at its face (par) value, then it must be the case that: A) the bond's yield to maturity is less than its coupon rate. B) the bond's yield to maturity is equal to its coupon rate. C) the bond's yield to maturity is greater than its coupon rate. D) the bond is a zero-coupon bond