1.Tasty Food, Inc. has issued a bond with par value of $1,000, a coupon rate of 9% that is paid semi-annually, and that matures in 10 years. The required return is 7%. What is the semi-annual coupon payment?

2.Bond X, Bond Y and Bond Z have the following ratings AAA, CCC & BBB respectively. Match the following potential yields 3%, 7% & 10%, to these bonds in the correct order respectively: "

		"3%, 10%, 7%"
		"3%, 7%, 10%"
		"10%, 7%, 3%"
		"7%, 3%, 10%"

3.Which factor below affects the coupon interest rates when corporations issue bonds?

		Inventory level of the issuing corporation
		Bond rating of the issuing corporation
		Confidence level of the issuing corporation
		Working capital of the issuing corporation

4.Which of the following statement is true?

		Net worth (true wealth) = Assets Liabilities
		Personals balance sheet records assets based on historical costs.
		"If you save consistently, your net worth will stagnate over time."
		The purpose of a personal income and expenditure statement is to access your future financial standing.

5.LynIT Ltd. issued a 10-year, 7% coupon interest rate, $1,000 par value bond that pays interest semi-annually. The required return is 5%. Compute the value of the bond.

		$1,155.89
		$1,154.43
		$857.88
		$610.27