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15.Terrific Towels. Inc. just issued a bond with a $1,000 face value and a coupon rate of 6.5%. If the bond has a life of

15.Terrific Towels. Inc. just issued a bond with a $1,000 face value and a coupon rate of 6.5%. If the bond has a life of 20 years, pays semi-annual coupons, and the yield to maturity is 7.80%, what will the bond sell for?

A. $794.45

B. $896.20

C. $869.41

D. $852.69

E. $436.49

16.Terrific Towels. Inc. issued a bond with a $1,000 face value and a coupon rate of 6.5%. If the bond has a life of 19 years, pays semi-annual coupons, and the yield to maturity is 7.80%, what will the bond sell for?A. $794.45B. $882.20C. $872.28D. $864.69E. $404.93

17.Which of the following bonds will have the largest percentage increase in value if interest rates decrease by 1%?

A.2-year, 5% coupon bond

B.30-year, 10% coupon bond

C.10-year, zero coupon

D.30-year, zero coupon

E.It is the same for all of the coupons

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