Answer as soon as possible: M.C.Q with Workings

QUESTION 2 1. An 8-year bond paying 6% coupon is currently trading at $786.60. What yield is the market demanding at this price?

8%

9%

10%

11%

12% 10 points

QUESTION 3 1. JC Penny issued a 20-year zero-coupon bond and investors are expected to demand a 6% yield to maturity What Should be the price of the bond? Assume annual compounding.

$311.80

$214.55

$148.64

$558.39

$463.19 10 points

QUESTION 5 1. Deere Inc. issued 15-years bonds paying 6% coupons annually. What should be the price of the bond if the market demands an 8% yield to maturity?

$827.08

$828.81

$802.07

$803.64

$750.76 10 points