3.

PowerTech Company has issued bonds paying a 4% Coupon Rate. The current market price of the bonds are $960. What is the Current Yield of the bond?

		4.17%
		4%
		4.21%
		5.39%

4.

Voyager, Inc. has issued bonds with a twenty-year maturity that are paying a coupon of 8%. Rates have decreased since this issuing, so the bond is selling at a premium of $1,050. What is the Yield to Maturity if the bond was issued four years ago?

		3.40%
		7.46%
		3.73%
		6.80%

5.

You have two choices for bond purchases:

A bond rated BB+

A bond rated A+

Of the two, which bond has the least amount of risk associated with it?

		BB+
		A+