A bond has a face value of $1,000. The bond matures in 10 years. It has a coupon rate of 8% and pays interest annually. The yield is 9%. What is the price of the bond?

Question 1 options:

A)

788.56

B)

1,000.00

C)

935.82

D)

1,122.15

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Question 2(1 point)

A bond has a par value of 1,000. Matures in 20 years. Coupon rate of 11% per year. Annual couponpayments. Yield on this bond is 12%. What is the price?

Question 2 options:

A)

1,000.00

B)

856.71

C)

1,100.22

D)

925.31

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Question 3(1 point)

What can be stated for certain, before performing any calculations on the following bond? Face value $1,000. Coupon rate 9%. Yield 9%.

Question 3 options:

A)	The bond will be priced at a premium to face value.

B)	The bond will be priced at a discount to face value.

C)	The bond price equals face value.

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Question 4(1 point)

A bond has a face (par) value of 10,000. It matures in 20 years. The bond has an annual coupon of 9%. Based on a market rate (yield) of 7%, what is the current price of the bond?

Question 4 options:

A)

9,765.23

B)

11,243.00

C)

12,118.80

D)

10,000.00