ell pays at the "end" of the month while the second pays at the l honthly payments (to beginning" of the month. You believe that the second alternative must be worth more as the money comes to you faster, but how much more is it worth to you? a) $40 b) $480 c) $2,634 C $3.944 e) $6,000 2S 9eas 11) The White Pony Corporation has $1,000 face value bonds issued with a 7 % coupon. They mature in 6 years and call for semi-annual payments and currently have a yield to maturity of 5.5%, what will happen to the price of the bond if the market interest rate suddenly decreases to 4%? a) The bond price will increase but still trade St a discount b) The bond price will increase and trade at a premium c) The bond price will decrease but still trade at a premium d) The bond price will decrease and trade at a discount c) The bond price will remain unchanged ) Bonds issued by Cy berdine Systems Corporation bear a 6 00% coupon. payable quarterly The bonds Currently the bonds sell for $1,143.50. What is the yield to maturity? 5.25% a) b) 4.96% loco c) 8.10 % d) 6.18% e) 4.23% p://143.sO 13) Very Big Corp. of America has $1,000 face value bonds currently sell for $1,800. They have a 7,5% coupon rate. What is the current yield on these bonds? a) 4.58% 3.09 % b) 518% c) 4,17% d) 9,65% e)