Chadron Motors has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and selling for $1,127.34. At this price, the bonds yield 7.5 percent. What is the coupon rate? A. 9.00 percent

• B. 8.50 percent
• C. 8.00 percent
• D. 10.50 percent
• E. 12.00 percent

Last year, Chadron Motors issued both 5-year and 8-year bonds at par. The bonds each have a coupon rate of 5.5 percent, paid semiannually, and a face value of $1,000. Assume the yield to maturity on each of these bonds is now 7.4 percent. What is the percentage change in the price of the 5-year bond since it was issued? The 10-year bond?

• A. -6.08; -6.33
• B. -6.48; -10.24
• C. -3.39; -5.77
• D. -3.39; -6.08
• E. -6.48; -12.33