Questions 9-12 are based on the following information. On Jan. 1, 2008, Laura purchased one $1,000 3-year semiannual bond with a coupon rate of 8%. The yield to maturity of the bond was 10% at the time. How much did Laura pay for the bond? a. $974.21 b. $949.24 c. $1,000 d. $767.90 9. 10. How much did the firm actually borrow from Laura on Jan. 1, 2008? a. $1,000 b. $974.21 c. $949.24 d. $767.90 11. The coupon payment and interest in the first period are respectively. a. $40 and $47.46 b. $40 and $43.84 c. $40 and $41.33 d. $40 and $80 12. On July 1, 2008, Laura persuaded you to buy one bond. Suppose the bond yield was not changed. How much did you actually pay to get this bond? a. 956.71 b. 974.21 c. 949.24 d. 972.77 Questions 9-12 end. Questions 13-16 are based on the following information. Today, you bought one corporate semi-annual bond with $1,000 par value, 8% coupon rate, 8 years left to maturity. Today's interest rate of the bond is 10% 13. What is the price of the bond today? a. $875.38 b. $891.62 c. $1,000.00 d. $1,116.52 14. How much interest (not just coupon) in total should the corporation pay you in the next five years? a. $400.00 b. $435.90 c. $447.40 d. $457.62 15. How much will the corporation owe you at the end of the fifth year? a. $1,052.42 b. $922.78 c. $949.24 d. $1000.00 16. Suppose the market interest rate does not change in the next 8 years and the corporation does not default on the bond, which of the following statements about the bond's price over the next 8 years is TRUE? a. The bond's price is undetermined b. The bond's price is decreasing over time until it becomes $1,000 at the time of maturity. c. The bond's price is unchanged over time. d. The bond's price is increasing over time until it becomes $1,000 at the time of maturity Questions 13-16 end