D. annuity, perpetuity, and single payment 2. If a bond pays interest semiannually, then it pays interest A. once per year. B. every six months C. every three months D. every two years. 3. If the nominal interest rate per year is 10 percent and the inflation rate is 4 percent, what is the real rate interest? A. 10.0 percent B. 4.1 percent C. 5.8 percent D. 14.0 percent 4. You buy a 12-year 10 percent annual coupon bond at par value, $1,000. You sell the bond three years la $1,100. What is your rate of return over this three-year period? A. 40 percent B. 10 percent C. 20 percent D. 30 percent 5. A four-year bond has an 8 percent coupon rate and a face value of $1,000. If the current price of t $878.31, calculate the yield to maturity of the bond (assuming annual interest payments).(Hint: If the pr than the face value, then?) A. 8 percent B. 7 percent C. 12 percent D. 6 percent