Rick bought a bond

Paragraph Styles Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 percent. Long-term risk-free government bonds were yielding 8.7 percent at the time. The current risk premium on BBB bonds versus government bonds is half of what it was two years ago. If the risk- free long-term government bonds are currently yielding 7.8 percent, then at what interest rate should Rolling Coast expect to issue new bonds? Group of answer choices 7.8% 8.79 9.2% 10.2% 12.9% investors simple annual required rate+ofreturi 12 percent how much shot the Snipping Tool File Edit Tools Help So New Mode - Delay - - , Question 70 1 pts A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If an investor's simple annual required rate of retum is 12 percent, how much should the investor be willing to pay for this bond? $941.36 $1.051.25 $1.115.57 $1.391.00 $1.113.00