the tradition of odd prcing

Stahaing. An increase in the market rate of interest will have which one of the following effects on this bond? a. Increase the coupon rate b. Decrease the coupon rate c. Increase the market price d. Decrease the market price e. Increase the time period 2. You are purchasing a 20-year, zero-coupon bond from Walthers Company. The yield to maturity is 8.68% and the par value is S1,000. What is the current market price? (Hint: assume interest is compounded semi-annually) a. 106.67 b. 108.18 C. 182.80 d. 221.50 e. 228.47 walters has a 7% coupon bond on the market with ten years left to maturity. The bond makes annual payments and currently sells for $842.10. What is the bond's yield to maturity? 3, a. 8.50% b. 8.68% c. 8.92% d. 9.52% e. 9.68% 4. If the Walthers bond in the question above was a semi-annual bond, all else being equal, what would be its yield to maturity? a. b. c. d. e. 4.34% 4.74% 8.50% 8.68% 9.48% Walthers wants to sell a 15-year annual coupon bond with par value of 100 and a price of 95. Similar credit quality bonds sell for a yield to maturity of 10%, what coupon should wathers offer? 5. a. 9.34% b. 10.0% c. 15.0% d, 15.0% 6. For a Walthers bond to be priced above par value (i.e. sell at a premium), which of the following must be true? a. b. c. d. It must be a zero coupon bond It must be a short term bond with maturity less than one year Its yield to maturity must be greater than its coupon rate Its yield to maturity must be less than its coupon rate