18.Assume that a corporate bond has a par value of $1,000 and 15 years until it matures.Also assume that investors require an annualeffective rate of returnof 12.36% (compounded semi-annually), that coupon interest is paid semi-annually, and that the current price for this bond is $931.18.What is the annual coupon rate on this bond?

A.11.00%

B.10.25%

C.10.75%

D.10.00%

E.10.50%

19.Assume that a corporate bond has a par value of $1,000 and 10 years until it matures.This bond also has an annual coupon rate of 8.0%, pays interest every 6 months, and has a current price of $945.48.Assume now that the firm has the right to call this bond at the end of 5 years at a price of $1,100.What is the yield to call (as anominal rate) for this bond?

A.10.0%

B.12.0%

C.8.0%

D.9.0%

E.11.0%

20.Assume that the Pure Expectations Theory of the Term Structure is correct and that the expected one year rates for each of the next three years are Year 1 = 5%, Year 2 = 6%, and Year 3 = 7%.Assume now that a corporate bond has a par value of $1,000, 3 years until it matures, and pays $50 in interest on an annual basis each year (you should now be able to calculate the price of this bond - see table below).What is the yield to maturity for this bond?

A.5.86%

B.6.16%

C.5.96%

D.6.26%

E.6.06%