1.

What is the value of a bond that matures in 17 years, makes an annual coupon payment of $50, and has a par value of $1,000? Assume a required rate of return of 6%.

Group of answer choices

$856.29

$822.90

$904.87

$895.23

2.

A corporate bond is currently selling for $850. The bond matures in 20 years, has a face value of $1,000, and a yield to maturity of 10.55%. The bond's coupon rate is

Group of answer choices

12%.

10%.

13%.

11%.

3.

What is the value of a bond that matures in 5 years, has an annual coupon payment of $110, and a par value of $2,000? Assume a required rate of return of 7%.

Group of answer choices

$1,890.07

$938.50

$1,876.99

$1,750.00

4.

In an efficient market, the market value and intrinsic value of a security should be equal.

Group of answer choices

True

False

5.

Bond prices are inversely related to market interest rates.

Group of answer choices

True

False