6. A "growing annuity" is a cash flow stream that grows at a constant rate for a specified number of periods. A. True B. False 7. Bluff Enterprises has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 6 years, and have a 7% coupon. The current price is $1,013.60. What is the yield to maturity? A. 5.97% B. 6.49% C. 6.72% D. 6.86% E. 7.11% 8. All else equal, bond prices and interest rates are inversely related. A. True. B. False. (The following information applies to the next two questions.) You have just purchased a 10-year bond with a 6% coupon rate, a 7.5% yield to maturity and a par value of $1,000. Coupon payments are semiannual. 9. What is the purchase price of the bond? A. $895.78 B. $897.04 C. $938.40 D. $1,312.66 10. What would your rate of return at the end of the year be if you sell the bond? Assume the yield to maturity on the bond is at the time you sell is 9%. A. -2.03% B. -3.45% C. 5.37% D. 18.33%