Question: 2. Consider a bond with the following features: Maturity = 7 years Face value = $1,000 Coupon rate = 4% Semiannual coupons Price = $993

2. Consider a bond with the following features: Maturity = 7 years Face value = $1,000 Coupon rate = 4% Semiannual coupons Price = $993

What is this bond's YTM stated as an annual rate?

A 3.2500%

B 4.1161%

C 2.0581%

D 6.500%

3. Maturity (years) = 5 Face Value = $1,000 Coupon Rate = 3.00% Price = $900 Coupon (Annual)

What is the YTM (annual) of the above bond?

A 5.38%

B 5.30%

C 5.33%

D 4.80%

E 5.36%

5. Maturity (years) = 5 Face Value = $1,000 Coupon Rate = 6.00% Current Price = $965 Coupon dates (Semiannual)

What is the YTM (annual) of the above bond?

A 5.95%

B 3.45%

C 6.91%

D 3.42%

E 6.84%

6. Maturity (years) 5 Face Value = $1,000 Coupon Rate = 5.00% Current Price = $1,100 Coupon dates (Annual) Time to call (years) 3 Price if Called $1,050.00

What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date?

A 1.56%

B 4.55%

C 3.08%

D 3.11%

E 4.59%

7. Maturity (years) 5 Face Value = $1,000 Coupon Rate = 3.00% Current Price = $1,100 Coupon dates (Annual) Time to call (years) 3 Price if Called $1,030.00

What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date?

A 0.62%

B 2.73%

C -0.31%

D 0.63%

E 2.75%

8. Maturity (years) 9 Face Value = $1,000 Coupon Rate = 5.00% Current Price = $980 Coupon dates (Annual) Time to call (years) 6 Price if Called $1,050

What is the bond's yield to call (YTC) (annual) if the bond is called at its first possible date?

A 6.18%

B 5.40%

C 5.28%

D 6.12%

E 5.73%

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