1. A coupon bond that pays interest annually has a par value of $1,000, matures in six years, and has a yield to maturity of 4%. The intrinsic value of the bond today will be ______ if the coupon rate is 7%.

	A.	$712.99
	B.	$620.92
	C.	$886.28
	D.	$1,157.26

1 points

QUESTION 9

1. A coupon bond that pays interest of $100 annually has a par value of $1,000, matures in eight years, and is selling today at a $948. The yield to maturity on this bond is

A.

8.00%.

B.

11.01%.

C.

12.26%.

D.

14.08%.

1. The Rose Shoppe offers 10-year, 8 percent coupon bonds with semiannual payments and a yield to maturity of 8.24 percent. What is the price of a $1,000 face value bond?

	A.	$990.32
	B.	$983.86
	C.	$1,108.16
	D.	$1,521.75