A bond has a par value of 10,000. It matures in 15 years. The bond has a coupon rate of 7%, paid annually. Based on a market rate (yield) of 6%, what is the bond's price?

Question 5 options:

A)

9,892.12

B)

10,000.00

C)

9,789.34

D)

10,971.22

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Question 6(1 point)

A bond matures in 15 years with a $1,000 face value. The bond has a coupon rate of 12%, but payments are made semi-annually. Based on a yield of 9% in the marketplace, what is the bond's current price?

Question 6 options:

A)

978.65

B)

1,000.00

C)

1,244.33

D)

1,345.09

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Question 7(1 point)

Before performing any calculations, what can be stated with certainty about the following bond? Face value 1,000. Coupon rate 9%. Yield 10%.

Question 7 options:

The bond will trade at a discount to face value.

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

The bond price will equal face value.

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Question 8(1 point)

A bond with semi-annual coupon payments has the following characteristics: Par value of 10,000; coupon rate of 10% (annual); maturity date 30 years; yield of 9%. What is the current price?

Question 8 options:

A)

9,566.76

B)

12,355.23

C)

10,000.00

D)

11,031.90