Use the following to answer question 6- 10 A new 15 year bond has just been issued by a company with a face value of GHC of 12%. Comparable bonds are yielding 20% and interest is paid semi-annually buying the bond of this company or investing it in shares of Fan Milk. He came up with a criterion to help 1,000 and a coupon rate .An investor is contemplating hi m make the decision. If interest rate is expected to increase in six months, then he will prefer investing in Fan Milk shares. Current interest rate is 15% and the investor has assembled the following data. Real interest rate 10% and Expected inflations 896. 6. Based on the circumstance, will the investor buy the bonds? a. Yes b. No c. Cannot be determined because government controls interest rate d. Cannot be determined because the environment is changing all the time 7. What should be the price of the 15-year bond? a. GHC650.85 b. GH(622.92 c. GH0598.20 d. GH$712.34 8. If an investor purchased the bond and decided to sell the bond after 5 years, how much should she sell it for? a. GH(630.85 b. GHC586.23 c. GH(659.46 d. GHC705.18 9. Which of the following is not part of the risk an investor is exposed to when he buys a bond? a. b. c. d. Capital Gain Risk Interest Rate Risk Inflation Risk Reinvestment Rate Risk A bond has a coupon rate of 91-day Treasury Bill rate plus 4% and a face value of GHC!,000. If at the day of coupon payment, the 91 day Treasury bill rate is 15%, what is the amount of the coupon to be received? 10, a. GHC95.00 b. GhC86.50 c. GHC190.00 d. GHC150.20