Suppose the interest rate on a 1-year T-bond is 5.0% and that on a 2-year T-bond is 7.0% Assuming the pare expectations theory is correct, what is the market's forecast for 1-year rates 1 year from now? 7.36% 7.75% 8.16% 1.59% 9.04% Morty Corporation 's bonds have a 10-year maturity, a 6.25% semiannual common, and a par value of $1.000. The going interest ratew(rd) is 4.75%, based on semiannual compounding. What is the bond's price? 1, 043.09 1, 090.35 1, 118.31 1, 146.27 1, 174.93 A 15-year bond with a face value of $1.000 currently sells for $850. Which of the following statements is CORRECT? The bond's coupon rate exceeds its current yield. The bond's current yield exceeds its yield to maturity. The bond's yield to maturity is greater than its coupon rate. The bond's current yield is equal to its coupon rate. If the yield to maturity slays constant until the bond matures, the bond's price will remain at $850. This is the information for the problem 10, 11 and 12. Diel lac's bonds currently sell for $900 and have a par value of $1,000. They pay a $45 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1, 020. What is their yield to maturity (YTM)? 7.78% 6.09% 5.39% 6.71% 7.64%