As an investor, you are considering an investment in the bonds of the company. The bonds Pay interest quarterly, will mature in 15 years, and has a coupon rate of 6% on a face value of $1000. Currently, the bond is selling for $825. 19 If the required rate of return is 6.5% for bonds in this risk class, what is the highest price you will be willing to pay? A $952 B $1,000 C $713 D $1,126 20 What is the current yield on this bond? A 6.50% B 7.27% C 6.00% D 8.02% 21 What is the yield to maturity on these bonds if you purchase them at the current price? A 7.27% B 8.02% C 6.50% D 11.23% 22 If the bonds can be called in 5 years with a call premium of 4% of the face value, the yield to call on these bonds? A 7.27% B 11.23% C 8.02% D 6.50% Calculate the bank discount rates for the 4-week and 52-week issues. A 4-week: 0.1248%, 52-week: 0.0096% B 4-week: 0.0279%, 52-week: 0.0499% C 4-week: 0.0096%, 52-week: 0.1248% D 4-week: 0.0499%, 52-week: 0.0279%