QUESTION 9

Tesla bonds have a 20-year maturity and $1,000 par value. Their nominal yield to maturity is 5.00% (APR), they pay interest semi-annually, and they sell at a price of $875. What is the bond's nominal (annual) coupon interest rate?

		Less than 1%
		Between 1% and 3%
		Between 3% and 5%
		Between 5% and 7%
		More than 7%

QUESTION 9A

A 20-year Spanish bond has a $1,000 par value bond and a 12% annual coupon. The bond currently sells for $848.56. If the yield to maturity remains at its current rate, what will the price be 10 years from now?

		Less than $850
		Between $850 and $900
		Between $900 and $1,000
		Between $1,000 and $1,200
		More than $1,200