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PEED us s) ra 4-year bond with a 7% coupon and a 10% yield to maturity iscurrently worth 5904.90, how much will it tbe worth

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PEED us s) ra 4-year bond with a 7% coupon and a 10% yield to maturity iscurrently worth 5904.90, how much will it tbe worth I year from now if its yield is constant? A) $1,000.00 D) $904.90 C) $925.39 B) S94793 6) Which one of the following must be correct for a bond currently sell be correct for a bond currently selling at a premium? A) Its current yield is lower than its coupon rate. B) Its coupon rate is lower than the current market rate on similar bonds. C) The bond must be a Treasury Inflation Protected Security. D) Its yield to maturity is higher than its coupon rate. For the next 3 questions consider the following bonds, all with S1,000 par value: 1) A 65% coupon rate, 2-year, semiannual pay, bond priced to yield 6.5% 11) A 9% coupon rate, 20-year, semiannual pay bond priced S839.54 111) A 12% coupon rate, 10-year, annual pay bond priced to yield 6% IV) A zero-coupon, 20-year, bond priced to yield 16% 7) Which one has the highest Current Yield? A) I B) II C) III D) IV

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