MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) An investor holds a Ford bond with a face value of$5000, a coupon fate of 4%, and semiannual payments that matures on 01/15/2009. How much will the investor receive on 01/15/20097 1) A) 55100 B) $5200 C) $5000 D) $200 2) Consider a zero-coupon bond with a $1000 face value and ten years left until maturity. If the bond is currently trading for $459, then the yield to maturity on this bond is closest tor2) A) 8.1% Use the information for the question(s) below B) 7.5% C) 9.7% D) 10.4% The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually 3) Assuming the appropriate YTM on the Sisyphean bond is 75%, then the price that this bond trades for will be closest to: A)$1045 B) $957 C)S691 D) $1000 4) A company issues a ten-year bond at par with a coupon rate of 6% paid semi annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 78%, what was the percentage change in the price of the bond over the past two years?4) A)-43.04% Use the information for the question(s) below. Luther Industries needs to raise $25 million to fund a new office complex. B)-10.56% C)11.81% D) 75.55% The company plans on issuing ten-year bonds The following table summarizes the YTM for with a face value of $1000 and a coupon rate of 7.0% (annual payments). similar ten-year corporate bonds of various credit ratings Ratin YTM 6.70% 6.80% 7.00% 7.40% 8.00% 5) Assuming that Luther's bonds receive a AAA rating, the price of the bonds will be closest to: A) $1014 B) $1021 5) C) $937 D) $1000 6) A firm issues 20-year bonds with a coupon rate of 48%, paid semiannually. The credit spread for this firm's 20-yes debt is 1.2%. New 20-year Treasury notes are being issued at par with a coupon rate of 4.6%. What should the price firm's outstanding 20-year bonds be if their face value is $1000? 6)