What is the yield to maturity of a five-year, $5000 bond with a 4.5% coupon rate and semiannual coupons if this bond is currently trading for a price of $4876? A) 6.30% B) 4.30% C) 8.60% D) 5.07% A firm has an opportunity to invest $100,000 today that will yield $115,000 in one year. If interest rates are 6%, what is the net present value (NPV) of this investment? A) $15,000 B) $14, 151 C) $8491 D) $9000 Which of the following statements are true? A) A fall in bond prices causes interest rates to fall. B) Bond prices and interest rates are not connected C) A rise in interest rates causes bond prices to fall. D) A fall in interest rates causes a fall in bond prices Which of the following bonds will be most sensitive to a change in interest rates? A) a 30-year bond with a $1000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% APR paid annually B) a 15-year bond with a $5000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% APR paid annually C) a 20-year bond with a $3000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semiannually D) a ten-year bond with a $2000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% APR paid semiannually