At what interest rate would you need to earn from an investment in order to accumulate $17,632 after 5 years if you invest $12,000 now?

Group of answer choices

A. 6%

B. 10%

C. 8%

D.7%

A bond has a market price that exceeds its face value. Which one of these features currently applies to this bond?

Group of answer choices

A. Yield to maturity is lower than the coupon rate

B. Yield to maturity is equal to the coupon rate.

C. Yield to maturity is greater than coupon rate.

D. Discount bond

Bond A and Bond B have 8% coupons, have a $1000 face value, and are priced at par value. Bond A has 3 years to maturity, whereas Bond B has 20 years to maturity.Which of the following statements is true ?

Group of answer choices

A. Bond B has lower price sensitivity to changes in interest rates than Bond A.

B. Both bonds are not exposed to interest rate risk as they have the same coupons.

C. Bond B has greater price sensitivity to changes in interest rates than Bond A.

D. Bond B has lower default risk than Bond A