A 10 year corporate bond pays a 7.5% coupon rate. What is the bond's price if the required is 7% and the bond pays interest semiannually? (Par value of the bond is $1000.) A) $ 1175.32 B) $1181.47 C) $1035.53 D) $1052.97 E) $1222.18 The quoted ask yield on a 12 year $1000 par T-Bond with a 5% coupon and a price quoted of 106-10 is (use semiannual compounding) A) 5.00% B) 4.32% C) 4.36% D) 2.16% E) 2.18% Which of the following statement is correct? A) Duration is the elasticity of a security's value to small coupon changes. B) Duration is the time when all coupon payments are paid back. C) Duration of a premium coupon bond is longer than time to maturity. D) Duration of a zero-coupon bond is the same as the time to maturity. The _____ the coupon rate and the _____ the maturity; the less price sensitive the bond is, A) higher, longer B) higher, shorter C) lower, shorter D) lower, longer A decrease in interest rates will A) Increase the bond's price B) Decrease the bond's duration C) lower the bond's coupon rate D) Change the bonds payment frequency A 2 year maturity 10% coupon annual payment corporate bond with a required rate of return of 10% has a duration of _____ years. A) 1.05 B) 1.97 C) 1.22 D) 1.91 E) 1.40 A four-year bond that pays interest annually has a 6% coupon rate and 5% yield to maturity price of $1035.50. Annual interest rates are now projected to increase 50 basis points. The bond's duration is 3.81 years. What is the predicted new bond price after the interest rate A) $1016.71 B)1039.65 $1070.36 $1109.64