QUESTION 7 A company issues a 10-year, 4% coupon bond with annual coupon payments. On release, it has a price of $90 per $100 of face value. What current yield of this bond when it is released? 5.30% 4.00% 5.31% 4.44% QUESTION 8 A $1000 bond with a coupon rate of 0.8% paid semiannually has 5 years to maturity and a yield to maturity of 6%. If yield to maturity decreases to 4%, what will happen to the price of the bond? The price of the bond will decrease by $78.07 The price of the bond will rise by $76.58 The price of the bond will decrease by $76.58 The price of the bond will rise by $78.07 QUESTION 9 A company issues a callable 10-year, 4% coupon bond with annual coupon payments. The bond can be called at $95 in 4 year after release. On release, it has a price of $90 per $100 of face value. What is the yield to call of this bond when it is released? 5.72% 5.42% 5.31% 6.95%