Thatcher Corporation's bonds will mature in 16 years. The bonds have a face value of $1,000 and an 7.5% coupon rate, paid semiannually. The price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050. Round your answers to two decimal places. What is their yield to maturity? % What is their yield to call? % Check My Work (3 remaining) A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT? a. The bond is selling below its par value. b. If the yield to maturity remains constant, the bond's price one year from now will be lower than its current price. c. If the yield to maturity remains constant, the bond's price one year from now will be higher than its current price. d. The bond's current yield is greater than 9%. e. The bond is selling at a discount. Check My Work (3 remaining) Which of the following statements is CORRECT? a. The time to maturity does not affect the change in the value of a bond in response to a given change in interest rates. b. You hold two bonds. One is a 10-year, zero coupon, bond and the other is a 10-year bond that pays a 6% annual coupon. The same market rate, 6%, applies to both bonds. If the market rate rises from the current level, the zero coupon bond will experience the smaller percentage decline. c. The longer the time to maturity, the smaller the change in the value of a bond in response to a given change in interest rates. d. You hold two bonds. One is a 10-year, zero coupon, issue and the other is a 10-year bond that pays a 6% annual coupon. The same market rate, 6%, applies to both bonds. If the market rate rises from the current level, the zero coupon bond will experience the larger percentage decline. e. The shorter the time to maturity, the greater the change in the value of a bond in response to a given change in interest rates. Check My Work (3 remaining) You are considering two bonds. Bond A has a 9% annual coupon while Bond B has a 6% annual coupon. Both bonds have a 7% yield to maturity, and the YTM is expected to remain constant. Which of the following statements is CORRECT? a. The prices of both bonds will increase over time, but the price of Bond A will increase by more. b. The prices of both bonds will increase by 7% per year. c. The prices of both bonds will remain unchanged. d. The price of Bond A will decrease over time, but the price of Bond B will increase over time. e. The price of Bond B will decrease over time, but the price of Bond A will increase over time