15. Redesigned Computers has 7 percent coupon bonds outstanding with a current market price of $687.00. Interest is paid annually. The yield to maturity is 12 percent and the face value is $1,000. How many years is it until these bonds mature? A. 6.64 years B. 7.35 years C. 12.28 years D. 18.14 years E. 23.87 years 16. Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 5 years. How much will you receive for your bond if the market yield to maturity is currently 6 percent? Ignore any accrued interest. A. $696.60 B. $698.09 C.$747.26 D. $756.14 E. $862.61 17. A bond that pays interest annually yielded 7.47 percent last year. The inflation rate for the same period was 6.10 percent. What was the actual real rate of return on this bond for last year? A. 1.19 percent B. 1.25 percent C. 1.29 percent D. 1.36 percent E. 1.41 percent 18. The outstanding bonds of Winter Time Products provide a real rate of return of 3.03 percent The current rate of inflation is 4.68 percent. What is the actual nominal rate of return on these bonds? A. 7.58 percent B. 7.33 percent C. 7.71 percent D. 7.76 percent E. 7.85 percent

15. Redesigned Computers has 7 percent coupon bonds outstanding with a current market price of $687.00. Interest is paid annually. The yield to maturity is 12 percent and the face value is $1,000. How many years is it until these bonds mature? A. 6.64 years B. 7.35 years C. 12.28 years D. 18.14 years E. 23.87 years 16. Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 5 years. How much will you receive for your bond if the market yield to maturity is currently 6 percent? Ignore any accrued interest. A. $696.60 B. $698.09 C. $747.26 D. $756.14 E. $862.61 17. A bond that pays interest annually yielded 7.47 percent last year. The inflation rate for the same period was 6.10 percent. What was the actual real rate of return on this bond for last year? A. 1.19 percent B. 1.25 percent C. 1.29 percent D. 1.36 percent E. 1.41 percent 18. The outstanding bonds of Winter Time Products provide a real rate of return of 3.03 percent. The current rate of inflation is 4.68 percent. What is the actual nominal rate of return on these bonds? A. 7.58 percent B. 7.33 percent C. 7.71 percent D. 7.76 percent E. 7.85 percent