Which one of the following bonds is most sensitive to interest rate risk?

a$.3-$year; $4$ percent coupon

b$.7-$year; $4$ percent coupon

c$.5-$year; $4$ percent coupon

d$.5-$year; $6$ percent coupon

e$.7-$year; $6$ percent coupon

Which of the following should be included in the analysis of a new product

$($I$.)$ Decrease in costs for a current product when the new service is launched

III. Cash paid for marketing analysis conducted $3$ months ago

III. Increase in accounts payable needed to finance purchase of inventory

IV$.$ Salvage value of a machine owned by the company which will be used to produce the new product

a$.$ I and III only

b$.$ II and IV only

c$.$ II$,$ III, and IV only

d$.I_2$ III, and IV only

e$.$ I, II$,$ III and IV

A level$-$coupon bond has a face value o $$1,000$ and is trading at $$1,100.$ The bond pays semi$-$annualcoupons of $$50.$ If the YTM is $7\%,$ what is the coupon rate of the bond?

a$.5\%$

b$.4\mathrm{.}45\%$

c$.9\mathrm{.}09\%$

d$.10\%$

e$.7\%$

Bonds A and $B$ are similar in every way except their frequency of coupon payments; bond A pays a semi$-$annual coupon, whereas bond $B$ pays an annual coupon. Which bond has a lower price $($as in$,$ which bond is less desirable$)?$

a$.$ Bond $A$

b$.$ Bond $B$

$($c$)$ Since both have the same terms, and thus same coupon rate, both are equal

d$.$ Neither

e$.$ Not enough information