14) As a bond's time to maturity increases, the bond's sensitivity to interest rate risk: A) increases 8) decreases C) remains constant D) bond's maturity and interest rate risk are not related 15) You own a band that pays 564 in interest annually. The face value is $1,000 and the arent market price is $1,021,61. The bond matures in 11 years. What is the vield to maturity A) 612 percent 8) 6.22 percent C) 6.46 percent D) 6.71 percent 16) Roadside Markets has 8 percent coupon bonds outstanding that mature in 10 years. The bonds pay interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 7 percent? A) $1,199.80 B) $999.85 C) $903.42 -D) $1,071.06 17) The yield to maturity on a bond is currently 8.76 percent. The real rate of return is 4.48 percent. What is the rate of inflation? (Hint: yield to maturity is the same as nominal interest rate) A) 4.10 percent B) 5.64 percent C) 7.24 percent D) 12.04 percent 18) A corporate bond is currently priced at $989.60 and has a coupon rate of 4.8 percent, paid semiannually, par value of the bond is $1000. What is the current yield? A) 4.24 percent B) 4.85 percent C) 5.36 percent D) 5.62 percent