14: Consider a bond that pays coupons semiannually. The face value is $1,000.

The current bond price is $1,087. The coupon interest rate is 9%. The bond has 5 years left until maturity. What is this bonds yield to maturity? (to the nearest hundredth of a percent)

a. 3.46%

b. 8.98%

c. 6.91%

d. 1.74%

15: Consider a bond with a $1,000 face value, a yield to maturity of 8.0%, a

coupon interest rate of 9.0% with annual, end-of-year payments, and a maturity of 2 years. What is this bonds duration? (to the nearest hundredth)

a. 1.46

b. 1.00

c. 1.92

d. 2.00

16: Mary bought a coupon-paying bond at a price of $1,025. The bond pays one

coupon per year, at the end of year. One year after Marys purchase, she

received a coupon of $80; she also sold the bond for $1,010. What was Marys

realized rate of return? (to the nearest tenth of a percent)

a. 7.8%

b. 6.3%

c. 8.0%

d. 1.5%

17: Consider a zero-coupon bond with face value of $1,000 and 5 years to

maturity. The bonds yield to maturity is 9%. What is its duration?

a. 9.00

b. 1.09

c. 1.90

d. 5.00

Please show the process