22. The value of a bond is equal to:

a. Its par value divided by the coupon rate

b. Its yield to maturity

c. The present value of the coupon payments only

d. The present value of the coupon payments plus the present value of the bond's face value

e. its face value

f. None of the above

21. You own an 8% coupon bond that pays semi-annual interest and matures in 8 years. The market value of similar bonds is currently 11%. What is the current value of your $1,000 face value bond?

a. $830.58

b. $843.07

c. $893.30

d. $904.98

e. $1,261.55

f. None of the above

20. A coupon bond that is selling at a premium must have:

a. A coupon rate that is equal to the yield to maturity

b. No market value

c. Semi annual interest payments

d. A yield to maturity that is less than the coupon rate

e. A coupon rate that is less than the yield to maturity

f. no dividend payments

19. The Crimson Company has arranged for a $1,950,000 mortgage to finance the purchase of a 3 acre parcel of land. The mortgage has an APR of 5.2%. Monthly payments are based on a 30 year payout schedule but the mortgage loan is scheduled to be paid off after 8 years. How much will the company pay back after the 8th year?

a. Between $1,500,000 - $1,550,000

b. Between $1,550,000 - $1,600,000

c. Between $1,600,000 - $1,650,000

d. Between $1,650,000 - $1,700,000

e. Between $1,700,000 - $1,750,000

f. None of the above