26. Suppose a 20-year $1,000 3% Treasury note with semiannual coupon payments is priced at $1,16.17. What is the yield to maturity at the current price? LO2

2.00%

1.83%

2.14%

2.81%

27. Suppose a 10-year $1,000 5% corporate bond with semiannual coupon payments offers a 7.14% yield. What price would an investor pay to buy this bond? LO2

$848.89

$1,121.71

$883.98

$1,019.32

28. Suppose a five-year $1,000 3% corporate bond with semiannual coupon payments is priced at $1,000. What is the yield to maturity at the current price? LO2

3.00%

6.86%

2.30%

10.05%