Q1: Kings Real Estates are considering to issue two Treasury bonds. Bond L has a 9 percent annual coupon, and Bond K has a 6 percent annual coupon. Both bonds have a yield to maturity of 7 percent. Assume that the yield to maturity is expected to remain at 7 percent. Which of the following statements is most correct? If the yield to maturity remains at 7 percent, the price of both bonds will increase by 7 percent per year. If the yield to maturity remains at 7 percent, the price of both bonds will increase over time, but the price of Bond A will increase by more. If the yield to maturity remains at 7 percent, the price of both bonds will remain unchanged. If the yield to maturity remains at 7 percent, the price of Bond A will decrease over time, but the price of Bond B will increase over time.

Q:2 Asad wanted to deposit $2,000 in a savings account that pays 8 percent interest, compounded quarterly. Asad was planning to use it to finish your last year in college. Eighteen months later, Asad decides to go to the Magalia Mountains, to become a ski instructor rather than continue in school, so Asad close out his account. How much money will Asad receive? $3,582 $3,126 $3,082 $3,163

Q:3 8-year annuity due has a present value of $6,000. If the interest rate is 5 percent, the amount of each annuity payment is closest to which of the following? $884.17 $847.36 $809.39 $804.72