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4. A bond currently is trading for $2,395 and pays a coupon payment for $68.75 every six months, the annual YTM is 6.25% and its

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4. A bond currently is trading for $2,395 and pays a coupon payment for $68.75 every six months, the annual YTM is 6.25% and its remaining maturity is 7 years. How much the investor will earn a par value payment at the end of seven years? * A) $3,080 O B) $2,500 C) $2,000 O D) $1,000 O E) None of the above 5. A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If interest rates rise and the yield to maturity increases to 8.6%, what will happen to the price of the bond? * A) The price of the bond will fall by $18.93. B) The price of the bond will fall by $15.78. C) The price of the bond will rise by $15.78. O D) The price of the bond will not change. E) None of the above 6. The 6.4 percent bond of Berberich, Inc. has a yield to maturity of 6.8 percent. The bond matures in eleven years, has a face a value of $1,000, and pays semiannual interest payments. How much is the approximate capital gain yield from the bond? * OA) 0.20% OB) 0.40% C) 3.30% O D) 3.50% O E) 6.60%

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