9. A 15 year, 7% coupon rate bond is selling for $771.82. What is the current yield of the bond?

A. 22.8%

B. 7.0%

C. 9.1%

D. 10.0%

10. A 15 year, 7% coupon rate bond is selling for $771.82. What is the yield to maturity of the bond?

A. 22.8%

B. 7.0% C. 9.1% D. 10.0%

11. Which of the following bonds trade at a discount, premium or at par:

	Bond A	Bond B	Bond C
Coupon (semi-annual)	R 50 000.00	R 30 000.00	R 750.00
Face Value	R 1 000 000.00	R 500 000.00	R 10 000.00
Maturity	5 years	5 years	5 years
YTM	8%	12%	16%

A. Bond A trades at a discount, Bond B at Par and Bond C at a premium

B. Bond A trades at a premium, Bond B at Par and Bond C at a discount

C. Bond A trades at a premium, Bond B at premium and Bond C at a premium

D. Bond A trades at par, Bond B at a discount and Bond C at a premium

12. You have invested $1,000 in a 12% coupon bond that matures in three years. You are investing the interest income in a fund earning 8%. At the end of three years, what was your annualized rate of return?

A. 8%

B. 12%

C. 13.4%

D. 11.6%