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QUESTION *A zero-coupon bond has a yield to maturity of 15.5% and a par value of $1000. If the bond matures in 9 years. It

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QUESTION *A zero-coupon bond has a yield to maturity of 15.5% and a par value of $1000. If the bond matures in 9 years. It should sell for a price of today." QUESTION 2 "You purchased a 75-year annual interest coupon bond 2 year ago. Its coupon interest rate was 95%, and its par value was $1000. At the time you purchased the bond, the yield to maturity was 9%. If you sold the bond after receiving the first interest payment and the bonds yield to maturity had changed to your annual total rate of return on holding the bond for that year would have been approximately QUESTION 3 "Consider the following five 1,000 par value zero-coupon bonds: (A) Maturity in 1 year and 4.5Vield to Maturity. () Maturity in 2 yolls and 5.94 Yield to Maturity: (0 Maturity in 3 years and 8 Yield to Maturity. (D) Maturity in 4 years and Yield to Maturity, and (E) Maturity in 5 years and 10% Vield to Maturity, ignoring any liquidity premiums, the expected 1 year interest rate 1 year from now should be QUESTION *A zero-coupon bond has a yield to maturity of 15.5% and a par value of $1000. If the bond matures in 9 years. It should sell for a price of today." QUESTION 2 "You purchased a 75-year annual interest coupon bond 2 year ago. Its coupon interest rate was 95%, and its par value was $1000. At the time you purchased the bond, the yield to maturity was 9%. If you sold the bond after receiving the first interest payment and the bonds yield to maturity had changed to your annual total rate of return on holding the bond for that year would have been approximately QUESTION 3 "Consider the following five 1,000 par value zero-coupon bonds: (A) Maturity in 1 year and 4.5Vield to Maturity. () Maturity in 2 yolls and 5.94 Yield to Maturity: (0 Maturity in 3 years and 8 Yield to Maturity. (D) Maturity in 4 years and Yield to Maturity, and (E) Maturity in 5 years and 10% Vield to Maturity, ignoring any liquidity premiums, the expected 1 year interest rate 1 year from now should be

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