1) FOR THIS AND THE NEXT QUESTION. A 5-year BBB corporate bond is currently selling at 34.19 percent above par with a coupon rate of 13.75%. Note that par value = $1,000. Coupons are paid semiannually. Calculate this bond's yield to maturity.

5.67%

3%

5.78%

less than 5%

10.25%

Calculate the bond's current yield.

5.67%

3%

5.78

less than 5%

10.25%

3) FOR THIS AND THE NEXT 2. A bond rated AAA has a current market price of $800, a coupon interest rate of 10%, and a 10-year maturity. Interest is paid SEMIANNUALLY. If the bond's par value is $1,000, what is its yield to maturity (YTM)?

6.82%

13.74%

14.74%

none of the above

4) Calculate the realized compound yield (RCY) if the coupons can be reinvested at an average annual rate of 7%.

11.21%

11.61%

12.54%

13.54%

none of the above

Suppose the investor expects to sell the bond 5 years from now for $900. What is the investor's holding period yield?

about 7%

about 10%

14.3%

15.02%