1. (TCO 5) Scott Turner has a bond with 10 years to maturity, a face value of $1,000, a 7% interest rate, and a market price of $800. What is the yield to maturity on this bond?

8.00%

11.00%

7.00%

10.00%

11.11%

2. (TCO 5) What is the current yield for a $1,000 corporate bond that pays 9% and has a current market value of $825?

9.0%

10.9%

10.0%

8.25%

8.0%

3. (TCO 3) A motor vehicle has annual depreciation of $2,500, oil changes cost $230, automobile insurance costs $550, and license plates cost $125. What is the annual amount of the total fixed operating cost for this vehicle?

$3,405

$2,625

$2,500

$3,050

$3,175