Which of the following statements is wrong? (a) Bond is a fixed-income security (b) The last bond payment happens at maturity ) Yield to maturity equals to annual coupon divided by bond's price (d) Face value payment happens at maturity (e) Coupon rate is annual coupon divided by bond's face value Suppose that current bond's market price is 5900. Its annual coupon is $50 and face value is $1,000. Which of those values can be bond's yield to maturity? I: 4.90%; II: 5.50%; III: 5.00%; IV: 4.15%; V: 6.00% (a) I, III and Ive (b) I and IV (c) II, III and ve (d) II and ve (e) I, II, III, IV and Ve Which of the following statements is wrong? (2) Yield curve describes how zero-coupon bonds" yield to maturities depend on maturities 6) Yield curve is normally upward sloping but can be flat or downward sloping sometimes c) Interest rate risk pushes yield curve to be upward sloping d) Before economic recessions, yield curve is normally upward sloping () All statements are correct 5 years ago, you purchased a 10-year par bond with annual coupon payments and face value of $1,000. At the moment of your purchase, bond's yield to maturity was 5%. Today, yield to maturity is 6%. What will be your capital gain from holding the bond for 5 years if you sell the bond today? (a) 4.21% b) 0.00% (c) 1.00% (d) -4.21% (e) -1.00%