3. XYZ has bonds on the market making annual payments, with 20 years to maturity, a par value of $1,000, and a current price of $1125. . At this price, the bonds yield 10 percent. What is the coupon payment?

A) $100

B) $110

C) $115

C) $120

D) $125

E) $130

4. EMC has bonds on the market making semi annual payments, with 10 years to maturity, a par value of $1,000, and a current price of $900. . At this price, the bonds yield 12 percent. What is the coupon rate?

A) 11.66%

B) 5.12%

C)10.26%

D) 11.26%

E) 12?%

5. Which of the bonds have the greatest interest rate risk?

A) 10 year bond, 5% coupon

B) 20 year bond, 5% coupon

C) 30 year bond, 4% coupon

D) 30 year bond, zero coupon

E) 25 year bond, zero coupon