can you help me with these questions? i need the answer in an hour. thanks

Wachowicz Corporation issued 15-year, non-callable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to maturity?

• $1,077.01
• $1,104.62
• $1,132.95
• $1,191.79

Question 2.2. D. J. Masson Inc. recently issued non-callable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?

• $829.21
• $850.47
• $872.28
• $894.65

Question 3.3. Quigley Inc.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?

• 8.56%
• 9.01%
• 9.46%
• 9.93%

Question 4.4. The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price?

• $923.22
• $946.30
• $969.96
• $994.21

Question 5.5. Managers should under no conditions take actions that increase their firm's risk relative to the market, regardless of how much those actions would increase the firm's expected rate of return. (Points : 2)

True

False

Question 6.6. The standard deviation is a better measure of risk than the coefficient of variation if the expected returns of the securities being compared differ significantly.

True

False

Question 7.7. Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds?

• The companys bonds are downgraded.
• Market interest rates rise sharply.
• Market interest rates decline sharply.
• The company's financial situation deteriorates significantly.

Question 8.8. Which of the following statements is CORRECT?

An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks.

• The higher the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.
• It is impossible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock.
• An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well-diversified, portfolio of stocks.

Question 9.9. Which of the following statements is CORRECT?

• All else equal, senior debt generally has a lower yield to maturity than subordinated debt.
• An indenture is a bond that is less risky than a mortgage bond.
• The expected return on a corporate bond will generally exceed the bond's yield to maturity.
• If a bonds coupon rate exceeds its yield to maturity, then its expected return to investors exceeds the yield to maturity.

Question 10.10. Sinking funds are devices used to force companies to retire bonds on a scheduled basis prior to their maturity. Many bond indentures allow the company to acquire bonds for a sinking fund by either purchasing bonds in the market or selecting the bonds to be acquired by a lottery administered by the trustee through a call at face value.

True

False