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6. What is the semi-annual coupon rate for a bond with three years until maturity, a price of $1,053.46, and a yield to maturity of

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6. What is the semi-annual coupon rate for a bond with three years until maturity, a price of $1,053.46, and a yield to maturity of 6%? A. 3.987% B. 7.974% C. 8% D. 3% 7. If a four year bond with a 7% annual coupon rate and a 10% yield to maturity is currently worth $903.05, how much will it be worth one year from now if interest is paid semi-annually and market interest rates remain constant? A. $ 923.86 B. $ 925.39 C. $ 947.93 D. $1,000.00 8. If a four year bond with a 7% coupon and is currently worth $904.90, how much will it be worth one year from now if the annual market interest rate declines by 1% and interest payments are made semi-annually? A. $ 904.90 B. $ 925.39 C. $ 949.92 D. $1,000.00 9. What happens to the price of a three-year bond during year 1 with an 8% coupon if the market interest rate change from 8% to 6% and interest is paid semi-annually? (How much does the price change from t=0 to t=1) A. A price increase of $51.54 B. A price decrease of $51.54 C. A price increase of $37.17 D. No change in price 10. If a four year bond with a 7% coupon and is currently worth $904.90, how much will it be worth one year from now if the annual market interest rate declines by 2% and interest payments are made semi-annually? A. $ 975.34 B. $ 925.39 C. $ 949.94 D. $1,000.00

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