33. What is the annual coupon payment for a bond (par value of $1,000) with 7 years

until maturity, a price of $1,000, and a discount rate of 6%?

A) $80

B) $70

C) $60

D) $50

E) None of the above

34. What happens to the price of a three-year bond with an 8% coupon when interest rates change from 6% to 8%?

A) A price increase of $53.47

B) A price decrease of $51.54

C) A price decrease of $53.47

D) No change in price

E) None of the above

35. What is the rate of return for an investor who pays $1,000 for a three-year bond

with a 7% coupon rate and sells the bond one year later for $1,000?

A) 5%

B) 6%

C) 7%

D) 8%

E) none of the above

Need help with these questions and how to solve them using a calculator Thanks