6. An 8% annual coupon bond, with a face value of $1,000 that matures in 15 years, pays interest annually, and has a yield to maturity of 9.75 percent. What is the current market price of the bond? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)

7. You are purchasing a bond that currently sold for $1,085.36. it has the time-to-maturity of 12 years and a coupon rate of 7%, paid semi-annually. The bond can be called for $1,040 in 3 years. What is the yield to maturity of this bond? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)

8. What is the YTM of a $1,000 par value bond with a 10% coupon rate, semi-annual coupon payments, and 9 years to maturity if the bond currently sells for $900? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)

9. Ford Motors bond is currently traded at the value of $1,208.70 and a yield of 4.22%. The current rating of the bond is BBB. If the bond rating company upgrades the rating to A, what will happen to the price and the yield of the bond?

Price: Decrease, Yield: Increase

Price: Decrease, Yield: Decrease

Price: Increase, Yield: Increase

Price: Decrease, Yield: Unchanged

Price: Unchanged, Yield: IncreaseUnchange

Price: Unchanged, Yield: Increase

Price: Increase, Yield: Decrease

10. If a $1,000 face value bond is sold at $1,052.41 and has a coupon rate of 10%, which one of the following rate is the most feasible yield to maturity of this bond?

12.54%

10.00%

11.24%

All of the above are feasible.

None of the above are feasible.

Not enough information to answer.