1: What is the price of a zero coupon bond with 8years of maturity left and a current yield to maturity of 5%?The bond has par value of $1000.

2: You bought a bond with 5%coupon rate,10yearmaturity,and$1000parvalue for $1,071one year ago.Today the bond has a price of$856. If you sell the bond today, what is your return on theinvestment?

3: Which of the following bond has the highest interest rate risk?

A.A 10year treasury bond with zero coupon rate.

B.A 5year treasury bond with zero coupon rate.

C.A 10year treasury bond with 10%coupon rate.

D.A 5year treasury bond with 10%coupon rate.

4: If a bond has duration of 11 years with a bond price of 1000 and a yield to maturity of 4%. If the yield to maturity decreases by1%.How much willbond price change?

5: Adams Enterprises' noncallable bonds currently sell for $910. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity?

A.11.21%

B.9.95%

C.7.34%

D.9.66%

E.8.60%