1. Consider the bonds with the following features: face value=$1,000; coupon rate=9%; maturity=31 years. The bonds are currently selling in the market for $968, which of the following statement is most likely true:

1. The market rate k_d of the bond is exactly 9%
2. The bonds market value will be lower if the market rate for this bond k_d decreases
3. The market rate is k_d of the bond below 9%
4. If all the market conditions are unchanged, the market value of the bond will be higher next year
5. None of the above