21. Bonds sell at a discount when the market rate of interest is a. equal to the bond's coupon rate, b. greater than the bond's coupon rate. c. less than the bond's coupon rate. d, none of the items listed are true. Answer: 22. Tolkien, Inc,, is planning to expand its stores into five other states and finance the expansion by issuing is-year semi-annual zero-coupon bonds with a face value of $1,000. If your required rate of return is 8 percent, what will be the price at which you will be willing to purchirse these bonds? (Round to the nearest dollar.) a. $315 b. $822 c. $308 d. $555 Answer: 23. The 5 percent semiannual coupon bonds of Under The Mountain, Incorporated,are selling for $995.25. The bonds have a face value of $1,000 and mature in 12 years. What is the yield to maturity? a. 5.26% b. 5.09% c. 11.1% d. 5.05% e. 10.07% Answer: 24. Gimli purchased a five-year bond today for $1,034.66. The bond has a 6.5 percent annual coupon rate. The bond pays interest semi-annually and has a face value of $1,000. What will be his yield to maturity? a. 6.5% b. 3.25% c. 2.85% d. 5.7%