Question $3$

As CFO of your corporation, you would prefer $($all else equal$)$ to see the price of your corporation's bonds:

Decrease, indicating that bond investors view your firm as less risky

Increase, indicating that bond investors view your firm as less risky

Increase, indicating that bond investors view your firm as more willing to take risks

Decrease, indicating that bond investors view your firm as more willing to take risks

Question $4$

The market price of a zero$-$coupon bond with a face value of $$1,000$ and $8$ years is $$897\mathrm{.}93.$ What is the yield to maturity

on this bond?

Enter your answer as a decimal, rounded to the fourth decimal place. For example, enter $12\mathrm{.}345\%$ as $\mathrm{.}0123.$

Question $5$

The market price of a zero$-$coupon bond with a face value of $$1,000$ and $5$ years is $$808\mathrm{.}11.$ What is the yield to maturity

on this bond?

Enter your answer as a decimal, rounded to the fourth decimal place. For example, enter $12\mathrm{.}345\%$ as $\mathrm{.}0123.$