Question 1 The bonds issued by Stainless Tubs bear an 8 percent coupon, payable semiannually. The bonds mature in 11 years and have a $1,000 face value. Currently, the bonds sell for $952. What is the yield to maturity on an annual percentage basis? A. 8.96 percent B. 7.56 percent C. 8.30 percent D. 8.69 percent QUESTION 2 Oil Well Supply offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000? $1,013.48 $1,002.60 $991.47 $989.70 QUESTION 3 Grand Adventure Properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 11.2 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000? $895.43 $896.67 $946.18 $953.30 QUESTION 4 You are purchasing a 20-year, zero-coupon bond. The yield to maturity is 8.68 percent and the face value is $1,000. What is the current market price? $172.80 $182.80 $189.24 $192.75 QUESTION 5 The Corner Grocer has a 7-year, 6 percent annual coupon bond outstanding with a $1,000 par value. The bond has a yield to maturity of 5.5 percent. Which one of the following statements is correct if the market yield suddenly increases to 7 percent? A. The bond price will decrease B. The bond price will increase C. The bond price will stay the same D. The bond will be called QUESTION 6 Blackwell bonds have a face value of $1,000 and currently are trading at a price of $984.00. The bonds have a 5 percent coupon rate. What is the current yield on these bonds? A. 6.12 percent B. 5.08 percent C. 3.18 percent D. 7.23 percent QUESTION 7 Normally, if the economy enters into a recession, the Federal Reserve initiates policy to lower interest rates. The bond values will likely A. remain static. B. increase as lower interest rates pressure bond values to fall. C. decrease as lower interest rates pressure bond values lower. D. increase as lower interest rates pressure bond values higher.