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You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time. The coupon interest rate

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You purchased an annual interest coupon bond one year ago that had six years remaining to maturity at that time. The coupon interest rate was 10%, and the par value was $1,000. At the time you purchased the bond, the yield to maturity was 8%. If you sold the bond after receiving the first interest payment and the yield to maturity continued to be 8%, your annual total rate of return on holding the bond for that year would have been O a. 7.00%. O b. 7.82%. c. None of the options are correct. d. 8.00%. e. 11.95%. A Treasury bond due in one year has a yield of 4.6%; a Treasury bond due in five years has a yield of 5.6%. A bond issued by Lucent Technologies due in five years has a yield of 8.9%; a bond issued by Exxon due in one year has a yield of 6.2%. The default risk premiums on the bonds issued by Exxon and Lucent Technologies, respectively, are O a. 1.6% and 3.3%. b. 0.5% and 0.7%. c. None of the options are correct. d. 3.3% and 1.6%. e. 0.7% and 0.5% A coupon bond that pays interest of $90 annually has a par value of $1,000, matures in nine years, and is selling today at a $66 discount from par value. The yield to maturity on this bond is a. 9.00%. b. 10.15%. c. 11.25%. d. 12.32%. e. 12.56%

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