Help with questions 10,11,12 &13

10. A manager purchases a $1,000 par value, 5% coupon bond that pays interest on a semi-annual basis. The bond's current yield is 5.1% and the YTM is 5.45%. The bond's price is closest to: a. $980 b. $990 c. $1,000 d. $1,100 There is not enough information. e 11. A corporate bond rating of AAA hascredit risk and yield to maturity compare to a similar bond with BB rating; assume other features are the same. a. Less; lower b. Less; higher c. More; lower d. e. Same; equal None of the above choices 12. Which of the following statement(s) is/are true? I. For a fixed coupon bond par of $1,000, if the coupon rate is 10% and coupons are paid semi-annual then you can expect to receive $1,100 at maturity II. Yield to maturity is the single return that makes the present value of the cash flows equal to the price. 111. For a fixed coupon bond par of $1,000, if the coupon rte is 12% and coupons are paid quarterly then you can expect to receive $60 coupon payment. a. Ionly b. II only c. III only d. I & II only e. None of the above choices 13. A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT? The periodic interest rate is greater than 3%. The PV of the $1,000 lump sum has a higher present value than the PV of a 3-year, $333.33 ordinary annuity The present value of the $1,000 would be smaller if interest were compounded monthly rather than semiannually The periodic rate is less than 3%. The present value would be greater if the lump sum were discounted back for more periods. a. b. c. d. e