1. What is the annual required rate of a 10-year bond that has 7% annual payment rate and $1000 in PV?

A.

16%

B.

14%

C.

9%

D.

7%

QUESTION 12

1. How many years left in year-to-maturity a 10-year bond outstanding with 12% annual required rate, 9% annual payment, and $908.88 in its fair value?

A.

4 years

B.

10 years

C.

8 years

D.

6 years

QUESTION 13

1. How many years left in year-to-maturity a 10-year bond outstanding with 9% annual required rate, 12% annual payment, and $1134.58 in its fair value?

A.

4 years

B.

8 years

C.

6 years

D.

10 years

QUESTION 14

1. How many years left in year-to-maturity a 10-year bond outstanding with 9% annual required rate, 7% annual payment, and $871.65 in its fair value?

A.

10 years

B.

4 years

C.

6 years

D.

8 years

QUESTION 15

1. Two10-year bonds have 10% annual required rate and the following payment rates: Bonds A has 14% and bond B has 8%. The fair values of these bonds are A____ and B_____

A.

$1425.78; 907.83

B.

$910.17; $1125.81

C.

$1271.91; $507.13

D.

$1245.78; $877.11