Zeal Corporation has 50-year bond pays an annual coupon. The bond has a yield to maturity of 8 percent. The bond currently trades at a premium--its price is above the par value of $1,000. Which of the following statements is most correct?
If the yield to maturity remains at 8 percent, then the bond's price will decline over the next year.
The bond's current yield is less than 8 percent.
If the yield to maturity remains at 8 percent, then the bond's price will remain the same over the next year.
The bond's coupon rate is less than 8 percent.

Q:2 8-year annuity due has a present value of $6,000. If the interest rate is 5 percent, the amount of each annuity payment is closest to which of the following?
$884.17
$847.36
$809.39
$804.72

Answer rating: 100% (QA)

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