Question 18 (1 point) Sentry Corp. bonds have an annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the yield to maturity on these bonds? a) 6.45% b) 6.146 OC) 5.85% G d) 6.779 e) 5.5696 Which of the following statements is CORRECT? a) A 10-year, 10% coupon bond has less reinvestment rate risk than a 10-year, 5% coupon bond (assuming all else equal). A $1,000 bond with $100 annual interest payments that has 5 years to maturity and is not expected to default would sell at a discount if interest rates were below 9% and at a premium if interest rates were greater than 11% b) Oc) The price of a 20-year, 10% bond is less sensitive to changes in interest sjugs than the price of a S-year, 10% d) The total return on a bond during a given year is the sum of the coupon interest payments received during the year and the change in the value of the bond from the beginning the end of the year. Oe) 10-year, zero coupon bonds have higher reinvestment rate risk thun 10-year, 10% coupon bonds