Question 34 2 points Save Answer Three $1,000 face value, 10-year, noncallable, bonds have the same amount of risk, hence their YTMs are equal. Bond 8 has an 8% annual coupon, Bond 10 has a 10% annual coupon, and Bond 12 has a 12% annual coupon. Bond 10 sells at par. Assuming that interest rates remain constant for the next 10 years, which of the following statements is CORRECT? a. Since the bonds have the same YTM, they should all have the same price, and since interest rates are not expected to change, their prices should all remain at their current levels until maturity. b. Bond 12 sells at a premium (its price is greater than par), and its price is expected to increase over the next year. c. Over the next year, Bond 8's price is expected to decrease, Bond 10's price is expected to stay the same, and Bond 12's price is expected to increase. d. Bond 8's current yield will increase each year. e. Bond 8 sells at a discount (its price is less than par), and its price is expected to increase over the next year. Question 33 2 points Save Answer Adams Enterprises noncallable bonds currently sell for $1,480. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity? a. 3.52% b. 4.55% C. 4.14% d. 3.31% e. 4.64% Question 32 2 points Save Ar Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and an annual coupon of 5.7%. If the current market interest rate is 7.7%, at what price should the bonds sell? a. $924.70 b. $652.25 c. $891.68 d. $1,015.52 e. $825.63 Save Answ Question 28 2 points 5-year Treasury bonds yield 6.1%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0.4%. There is no liquidity premium on these bonds. What is the real risk-free rate, r*? a. 3.80% b. 3.69% c. 3.42% d. 4.03% e. 4.45%