8)

You purchased a $1,000 bond that matures in 15 years and has a 7.0% coupon rate. If current interest rates fall to 6.25% what would be the price of the bond?

		$1,000
		$1,071.67
		$975.64

ANSWER THE 2 (7& 10 )QUESTIONS BELOW WITH QUESTION 8 ABOVE

7)

From the above, what is the current yield?

		7.0%
		6.5%
		7.2%

10)

From the above, what would the price of the bond be if the maturity date was 12 years?

		$1,062.03
		$1,054.62
		$874.29