1. Carbondale Co. bought a one year $100,000 par value Treasury Bill for $93,500. If Carbondale holds the bill to maturity, what will be the one-year rate of return?

a. 6.50%

2. 6.95%
3. 7.45%
4. Not enough information to answer the question

1. Bacon Signs Inc. has $500,000 outstanding of $1000 par value bonds with a coupon interest rate of 8% and 10 years to maturity. If Bacon Signs makes semiannual payments, how large is each payment per bond?

a. $40

2. $80
3. $800
4. $40,000

   Hood Corporation recently issued 20-year bonds. The bonds have a coupon of rate of 8 percent and pay interest semiannually. Also, the bonds are callable in 6 years at a call price equal to 115% of par value. The par value of the bonds is $1000 the bonds are currently priced at $1,106.78. What is yield to maturity and yield to call on these bonds?

5. 7.00%; 8.33%
6. 7.30%; 7.32%
7. 7.32%; 7.00%
8. 8.00%; 6.00%.