Chamberlain Co. wants to issue new 18-year bonds for some much-needed expansion projects. The company currently has 120 percent coupon bonds on the market that sell for $1.33112, make semiannual payments, and mature in 18 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1.000. Multiple Choice 8.30% 8.70% 8.10% 8.40% 4 20% Workman Software has 76 percent coupon bonds on the market with 16 years to maturity. The bonds make semiannual payments and currently sell for 110.4 percent of par. a. What is the current yield on the bonds? O 0.17% O 7.23% 6.88% 7.73% b. The YTM? 3.27% 6.54% 06.72% 8.10% c. The effective annual yield? 06.51% O 0.07% 6.98% O 6.65% Suppose the real rate is 5 percent and the inflation rate is 1.2 percent. What rate would you expect to see on a Treasury bill? Multiple Choice 6.26% 6.89% 7.20% 5.63% 5.32% Gabriele Enterprises has bonds on the market making annual payments, with 10 years to maturity, a par value of $1,000, and selling for $850. At this price, the bonds yield 9.6 percent. What must the coupon rate be on the bonds? Multiple Choice 8.47% 7.30% 14.40% 9.60% 720%