Question: 1 ) A $ 1 0 , 0 0 0 8 percent coupon bond that sells for $ 1 0 , 0 0 0 has

1) A $10,0008 percent coupon bond that sells for $10,000 has a yield to maturity ofA)8 percent.B)10 percent.C)12 percent.D)14 percent. 2) Which of the following $1,000 face-value securities has the highest yield to maturity?A) A 5 percent coupon bond selling for $1,000B) A 10 percent coupon bond selling for $1,000C) A 12 percent coupon bond selling for $1,000D) A 12 percent coupon bond selling for $1,1003) Which of the following $5,000 face-value securities has the highest to maturity?A) A 6 percent coupon bond selling for $5,000B) A 6 percent coupon bond selling for $5,500C) A 10 percent coupon bond selling for $5,000D) A 12 percent coupon bond selling for $4,5004) Which of the following $1,000 face-value securities has the lowest yield to maturity?A) A 5 percent coupon bond selling for $1,000B) A 10 percent coupon bond selling for $1,000C) A 15 percent coupon bond selling for $1,000D) A 15 percent coupon bond selling for $9005) Which of the following bonds would you prefer to be buying?A) A $10,000 face-value security with a 10 percent coupon selling for $9,000B) A $10,000 face-value security with a 7 percent coupon selling for $10,000C) A $10,000 face-value security with a 9 percent coupon selling for $10,000D) A $10,000 face-value security with a 10 percent coupon selling for $10,0006) A consol paying $20 annually when the interest rate is 5 percent has a price ofA) $100.B) $200.C) $400.D) $800.7) If a perpetuity has a price of $500 and an annual interest payment of $25, the interest rate isA)2.5 percent.B)5 percent.C)7.5 percent.D)10 percent. 8) If a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield tomaturity isA)5 percent.B)10 percent.C)50 percent.D)100 percent. 9) If a $5,000 face-value discount bond maturing in one year is selling for $5,000, then its yield tomaturity isA)0 percent.B)5 percent.C)10 percent.D)20 percent. 10) A discount bond selling for $15,000 with a face value of $20,000 in one year has a yield tomaturity ofA)3 percent.B)20 percent.C)25 percent.D)33.3 percent.

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