2. Whitesell Athletic Corporation's bonds have a face value of $1,000 and a 10% coupon paid semiannually; the bonds mature in 5 years. What current yield would be reported in The Wall Street Journal if the yield to maturity is 8%?

A) 4.62%

B) 4.97%

C) 5.11%

D) 8.83%

E) 9.25%

3. Suppose you purchase a zero coupon bond with face value $1,000, maturing in twenty years, for $214.55. What is the implicit interest, in dollars, in the first year of the bond's life?

A) $14.86

B) $16.84

C) $17.16

D) $39.27

E) $80.00

6. The bonds of Microhard, Inc. carry a 10% annual coupon, have a $1,000 face value, and mature in 4 years. Bonds of equivalent risk yield 15%. Microhard is having cash flow problems and has asked its bondholders to accept the following deal: The firm would like to make the next three coupon payments at half the scheduled amount, and make the final coupon payment be $250. If this plan is implemented, the market price of the bond will (rise/fall) to ___________. (Continue to assume a 15% required return.)

A) $808.89

B) $828.85

C) $851.25

D) $865.45

E) $892.51

9. Which bond would most likely possess the highest degree of interest rate risk?

A) 8% coupon rate, 10 years to maturity

B) 8% coupon rate, 20 years to maturity

C) 10% coupon rate, 10 years to maturity

D) 10% coupon rate, 20 years to maturity

E) 12% coupon rate, 20 years to maturity

plz choose an answer and explain why with formula