Choose the correct answers -

1.A firm has 6% coupon rate bonds outstanding with a current market price of $777. The annual yield to maturity is 10% and the par value is $1,000. How many years is it until these bonds mature?(A. 33.02 years, B.7.86 years, C.8.36 years, D.3.93 years)

2. You buy a 3 year, zero coupon bond with a 7.45% yield to maturity and par value is $1,000. What is the current market price?

(A.$803.36/B.$806.08 / C.$1,245.38 / D.$802.97)

3.You own a bond that has a 6% annual coupon rate and matures 5 years from now. You purchased this 10 year bond at par value when it was originally issued. Which one of the following statements applies to this bond if the relevant market interest rate is now 5.8% (yield to maturity)?

(A.The next semi-annual interest payment will be $60.

B.You will realize a capital gain on the bond if you sell it today.

C.The current yield-to-maturity is greater than 7%.

D.The current coupon rate is equal to 5.8%.)

4. You purchase a bond with a coupon rate of 6.25% and a par value of $1,000. There are 53 days to the next semiannual coupon payment date and the total number of days in the period is 182. What is the accrued interest amount? (A.$31.25/ B.$9.10/ C.$22.15/ D.$62.50)

5. What is the total dollar cash flow from selling a 2 year, $1,000 par value, 5% coupon bond for $963 after 1 year?The bond was purchased at issue date and it had a price of $989 at the end of the first 6 month period. (A.$37.00, B.$13.00, C.$13.72, D.$14.12)