What would be the yield to call of a 14 percent coupon rate, $1,000 par value bond priced at $1,160 if the call can be made in four years at a price of $1,080? *

a. 10%

b. 11.6%

c. 10.64%

d. 14%

e. None of the above

.Sanofi Company is about to issue a bond with semi-annual coupon payments, a coupon rate of 8% and par value of $1,000. The yield-to-maturity for this bond is 10% and the bond matures after 5 years. If the bond price is $922.78, what would be the current yield? *

a. 8%

b. 8.67%

c. 10%

d. 11%

e. None of the above

J&J Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of $75. The market requires an interest rate of 8% on these bonds. What is the bond's price? *

a. $966.45

b. $925.62

c. $948.76

d. $972.48

e. None of the above

Tosh. Inc.'s bonds currently sell for $980 and have a par value of $1,000. They pay a $95 annual coupon and have a 12-year maturity, but they can be called in 3 years at $1,150. What is their yield to call (YTC)? *

a. 7.73%

b. 7.50%

c. 7.91%

d. 8.12%

e. None of the above

A bond has a par value of $1,000, a time to maturity of 10 years, and a coupon rate of 8% with interest paid annually. If the current market price is $750, what is the capital gain yield of this bond over the next year? *

a. 1.85%

b. 8%

c. 10%

d. 3.5%

e. None of the above