1)The following information applies to the next five questions. A bond pays interest yearly has a face value of $1,000, a coupon rate of 9%, four (4) years until maturity, while the market rate for bonds of a similar rating is 6% at the time.Determine the market value of the bond, v0.

A.$1,000.00

B.$1,401.37

C.$1,103.95

D.$874.15

2)Determine the time-weighted present value of the cash flows provided by the bond (i.e. the numerator in the equation for computing the Macauley Duration (MD) for the bond.

A.$826.15

B.$3,925.33

C.$6,408.10

D.$1,836.88

3)Compute the Macauley Duration (MD) for the bond.

A.8.89 years

B.1.78 years

C.3.56 years

D.5.84 years

4)Compute the Modified Macauley Duration (MMD) for the bond

A.3.35 years

B.6.91 years

C.4.47 years

D.1.88 years

5)Determine the change in price if the YTM rate changes to 7% from the original 9%.

A.$-33.19

B.$73.96

C.$ 69.15

D.$-54.88