4. A bond with a face value of S1000 has annual coupon payments of We of $1,000 has annual coupon payments of $100 and was Issued 2 years ago. The band currently sells for $1.000 and has 8 years letto maturity. This bond's _must be 10% 1. yield to maturity Il current yield III. coupon rate I only B) I and II only C) III only D) II and III only E) I, II and III 5. A call provision in a bond agreement grants the issuer the right to: A) call the bondholder to determine if he or she would like to extend the term of the bond agreement. B) replace the bonds with equity securities. C) change the coupon rate provided the bondholders are notified in advance. D) buy back the bonds on the open market prior to maturity E) repurchase the bonds prior to maturity at a pre-specified price. 6. When a bond's yield to maturity is greater than the bond's coupon rate, the bond: A) will be called B) is selling at a premium. C) has reached its maturity date. D) is priced at par E) is selling at a discount. 7. A bond with face value $1.000 that sells for more than $1,000 in the market is called a: A) Par bond. B) Discount bond. C) Premium bond. D) Zero coupon bond. E) Floating rate bond. 8. Which of following statements is correct, everything else equal? A) A callable bond will have the higher coupon than a non-callable bond B) A secured bond will have the higher coupon than a debenture. C) A senior bond will have the higher coupon than a subordinated debenture, D) A bond with a sinking fund will have the higher coupon than a bond without a sinking fund. E) None of them is correct