8.(TCO D) A given bond has 5 years to maturity. It has a face value of $1,000. It has a YTM of 8% and the coupons are paid semiannually at a 7% annual rate. What does the bond currently sell for?

9. Explain thoroughly how stock portfolios affect the risk to an investor.

10.What is the difference between capital structure and capital budgeting? Explain and give an example of a capital structure decision and an example of a capital budgeting decision.

Question 3.3.(TCO B) Which of the following would cause the present value of an annuity to increase?(Points : 5)

Reducing the number of payments. Increasing the interest rate. Decreasing the interest rate. Decreasing the liquidity of the payments.