1a)A ten-year floating-rate note (FRN) has coupons referenced to 3-month pound LIBOR, and pays coupon interest quarterly. Assume that the current 3-month LIBOR is 4 percent. If the risk premium above LIBOR that the issuer must pay is 12.5 basis points, the next period's coupon payment on a 1,000 face value FRN will be

31.25.

82.50.

165.00.

10.31.

1b) The YTM of a bond is equal to its coupon rate. It implies that

this is a bearer bond.

this is a floating-rate note.

the price of the bond is equal to its par value.

this is a risk-free zero coupon bond.

this is a convertible bond.