8. Bavarian Sausage just issued a 10 year 12% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the required return on the bond is 10%, what is the bonds price? a. $815.16 b. $1,000 c. $1,122.89 d. $1067.24

9. Bavarian Sausage just issued a 10 year 12% coupon bond. The face value of the bond is $1,000 and the bond makes semiannual coupon payments. If the required return on the bond is 10%, what is the bonds price? a. $1,122.89 b. $815.26 c. $1,000.00 d. $1,124.62

10. Bavarian Sausage just issued a 10 year 12% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon payments. If the bond is trading at $967.25, what is the bonds yield to maturity? a. 12.00% b. 12.59% c. 11.26% d. 13.27%

11. Bavarian Sausage just issued a 10 year 12% coupon bond. The face value of the bond is $1,000 and the bond makes semiannual coupon payments. If the bond is trading at $867.25, what is the bonds yield to maturity? a. 12.00% b. 12.37% c. 14.56% d. 10.86%

12. Bavarian Sausage just issued a 10 year 12% coupon bond. The face value of the bond is $1,000 and the bond makes semiannual coupon payments. If the bond is trading at $1,267.25, what is the bonds yield to maturity? a. 12.00% b. 8.06% c. 14.38% d. 10.97%

13. Bavarian Sausage wants to issue a 10 year coupon bond. The face value of the bond is $1,000 and the bond makes semiannual coupon payments. Outstanding Bavarian Sausage 8% bonds with a remaining maturity of 10 years are currently trading at $1,145. These bonds also have a face value of $1,000 and make semiannual payments. If Bavarian Sausage wants the new bonds to sell at par, what should be the coupon rate on these bonds? a. 8.00% b. 6.05% c. 7.25% d. 9.35%

14. You just bought a bond with a yield to maturity of 9.5%. If the rate of inflation is expected to be 4%, what is the real return on your investment? a. 9.50% b. 5.29% c. 4.00% d. Not enough information.

15. What is the value of a 15 year 10% coupon bond with a face value of $1,000. The required return on the bond is 12% and the bond makes semiannual payments. a. $862.35 b. $1,167.39 c. $925.76 d. $1,000