Bartiromo, Inc., bonds have a 6 percent coupon rate with semi-annual coupon payments and a $1,000 par value. The bonds have 14 years until maturity, and sell for $950. What is the current yield for Bartiromo's bonds?

A) 3.28% B) 6.32% C) 6.55% D) 7.52%

Which of the following statements is true?

A) Short-term bonds have greater interest rate risk than do long-term bonds.

B) Long-term bonds have greater interest rate risk than do short-term bonds.

C) All bonds have equal interest rate risk.

D) none of the above

Cranston Industries just issued $1,000 par 30-year bonds. The bonds sold for $1,107.20 and pay interest semi-annually. Investors require a rate of 7.75 percent on the bonds. What is the bonds' coupon rate?

A) 9.333% B) 7.750% C) 4.125% D) 8.675%

If market interest rates rise

A) short-term bonds will decline in value more than long-term bonds.

B) short-term bonds will rise in value more than long-term bonds.

C) long-term bonds will decline in value more than short-term bonds.

D) long-term bonds will rise in value more than short-term bonds.

What is the value of a bond that has a par value of $1,000, a coupon of $80 (annually), and matures in 11 years? Assume a required rate of return of 11 percent, and round your answer to the nearest $10.

A) $320 B) $500 C) $810 D) $790