Hi,

Kindly assist with the 3 questions below:

1 - A $1000 par value bond has a current price of $795.85 and a maturity value of $1000 and matures in7 years. If interest is paid semiannually and the bond is priced to yield 9%, what is the bond's annual coupon rate? (Round to three decimal places).

2- A bond is priced in the market at $980 and has a coupon of 10%. Calculate thebond's current yield. (Round to two decimal places).

3- Which of the following bonds offers the highest currentyield?

a. A(n) 13.50%, 20-year bond quoted at 96.209.

b. A(n) 22.50%, 15-year bond quoted at 160.349.

c. A(n) 6.75%, 18-year bond quoted at 48.105.

The current yield of the bond in part a is

__%. (Round to two decimalplaces.)

The current yield of the bond in part b is

__%. (Round to two decimalplaces.)

The current yield of the bond in part c is

__%. (Round to two decimalplaces.)

Which of the three bonds offers the highest currentyield?(Select the best answerbelow.)

A. The bond in part a has the highest current yield because it is held for the longest period of time.

B. The bond in part b has the highest current yield because it has the highest coupon rate and the highest market value.

C. All of the above bonds have a current yield of approximately 14.03%.