Stockholders hat the w on a 1-year bond is now 6%, but all investors expelleraies to be one year from now and then to rise to 3% from now. Asume so that the pure expectations theory holds, hence the maturity risk peemiam quals ere. Which of the following tis CORRECT? The interest rate today on a 1-year bond should be approximately 7% h. The yield curve should be dowwww sloping with the rate on year bond at 6% e. The interest rate today on a 3-year bond should be approximately 3% d The interest rate today on a 2 year bond should be approximately 6% e. The interest rate today on a 2-year bond should be approximately 7% O O O Which of the following statements is CORRECT? O a. If a coupon bond is selling at par, its current yield equals its yield to maturity b. If a coupon bond is selling at a premium, then the bond's current yield is zero. c. If a coupon bond is selling at a discount, then the band's expected capital gain yield is negative O O d. If a bond is selling at a discount, the yield to call is a better measure of the expected return than the yield to maturity . The current yield on Bond A exceeds the curren vielen Bood. Therefore, Hond A must have a higher yield to maturity than Bond O A 10.year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT O a. The bond's current yield is above 9% O h. The band's current yield is less than its expected capital gains yield. O c. The bond's yield to maturity is above 9% O d. The bond's expected capital gains yield is zero O e If the bond's yield to maturity declines, the bond will sell at a discount Suppose you borrowed $80,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you have made the first payment? O a. 568,795.27 O b.563,267.08 O $66,498,74 O d. $66,338.29 e $74,323.46 Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 20.0% but with equal end-of-month payments percentage of the 2nd monthly payment will go toward the repayment of principal? a. 83.37% b. 71.70% O c.97.55% d. 101.72% O c. 86.71%