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Use the following information to answer the next THREE questions. A bond with a face value of $1,000 matures in 12 years and has a

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Use the following information to answer the next THREE questions. A bond with a face value of $1,000 matures in 12 years and has a 9 percent semiannual coupon. The bond has a nominal yield to maturity of 6.85%, and it can be called in 4 years at a call price of $1,045. Assume equilibrium, what is the price of the bonds? Select one: a. $1174 b. $1117 c. $ 761 d. $ 863 e. $ 902 What is the bond's nominal yield to call? Select one: a. 11.36% b. 5.16% O c. 9.98% d. 4.23% e. 6.61% Which of the following statement is correct? Select one: a. Bondholders are most likely to earn the YTC. o b. The bond is currently traded at a discount. c. The bond is less likely to be called. O d. All else equal, the price of the bond is expected to increase over time. e. The expected current yield will decrease

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