A. You just purchased a 30-year bond with 6% annual coupon, par value of $1000, and 15 years to maturity. The bond makes payments semi-annually and the interest rate in the market is 7.0%. Calculate bond price as of today

$936.74 $1015.76 $918.04 $908.04

B. You just purchased a 30-year bond with 6% annual coupon, par value of $1000, and 15 years to maturity. The bond makes payments semi-annually and the interest rate in the market is 7.0%. The bond can be called in 6 years, starting June 1, 2026 at 117% of par. Calculate its yield to call.

10.36% semiannually 6.5% semiannually 5.11% semiannually 3.5% semiannually

C. ABC Corp just purchased a 30-year bond with 4.5% annual coupon, par value of $1000. The bond makes payments semi-annually and the interest rate in the market is 5.2%. Calculate bond duration.

27.57 years 15.97 years 16.17 years 30 years

D. ABC Corp just purchased a 30-year bond with 4.5% annual coupon, par value of $1000. The bond makes payments semi-annually and the interest rate in the market is 5.2%. Calculate the change in bond price if the interest rate decreases by 0.5%

$57.13 increase $63.47 decrease $67.88 increase $67.88 decrease