The YTM (Yield to Maturity) on a 12 year bond is 5.27%. The bond has a face value of $1,000 and a coupon rate of 7.5%. Coupons are paid once per year. Interest rates are constant.

1.The bond price at T=0 is:

Select one:

. 605.41

b. 794.21

. 1,002 67

d. 1,083.39

e. 1,194.67

f. 1,890.62

g. 1,941.42

2. The bond price at T=1 is:

Select one:

a. 597.21

b. 687.38

c. 995.66

d. 1,083.39

e. 1,182.63

f. 1,890.62

g. 1,983.83

3.The bond return at T=1 will equal:

Select one:

a. .0421

b. .0527

c. .0721

d. .0750

e. .0829

f. .0877

g. .0931