Question: I need help on these questions, please show the work as well (If applicable). I greatly appreciate it! A bond with a face value of
I need help on these questions, please show the work as well (If applicable). I greatly appreciate it!

A bond with a face value of $1,000 matures in 9 years and has a 7% semiannual coupon. The bond currently sells for $846. You would sell at $846 for each bond if you think that a "fair" market interest rate (discount rate) for such bonds is __ (hint: find out what is the nominal yield to maturity first) Select one: O a smaller than 8.67% O b. smaller than 12.53% O O O c. smaller than 11.28% d. larger than 5.60% e. larger than 10.24% A bond with a face value of $1,000 matures in 12 years and has a 9% semiannual coupon. The bond has a current yield of 12%. Based on the information, you would expect the bond price to in one year. (Hint: Find capital gain/loss yield) Select one: O a. Decrease by 1.32% O b. Increase by 7.00% c. Decrease by 5.68% O d. Increase by 1.21% O e . Increase by 8.46% Which of the following statements regarding "Sinking Fund Provision" is most correct? Select one: a. In general, sinking fund bonds are issued with lower coupon rate than otherwise similar bonds without sinking funds. O b. A firm will choose to buy the required bonds on the open market if the bonds are treaded at a premium. c. A firm will choose to call back bonds for redemption at par value if the bonds are traded at a discount. O d. On balance, bonds that have a sinking fund are regarded as being riskier than those without such a provision. e. A sinking fund provision gives the issuer the right to sell bonds under specified terms prior to the normal maturity date. A bond has an 8 percent annual coupon and a yield to maturity equal to 7.5 percent. Which of the following statements is most correct? Select one: O a. The bond sells at a price below par. O b. If the bond is callable, the YTM is a better estimate of this bond's expected return c. If the yield to maturity remains constant, the price of the bond is expected to increase over time. d. The bond price will decrease when there is an increase in required discount rate. e. The bond has a current yield greater than 8 percent
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