Question: Please answer 1-5 or do not do any of them. 1.What can be stated for certain, before performing any calculations on the following bond? Face

Please answer 1-5 or do not do any of them.

1.What can be stated for certain, before performing any calculations on the following bond? Face value $1,000. Coupon rate 9%. Yield 9%.

A)

The bond price equals face value.

B)

The bond will be priced at a premium to face value.

C)

The bond will be priced at a discount to face value.

2.A bond has a par value of 10,000. It matures in 15 years. The bond has a coupon rate of 7%, paid annually. Based on a market rate (yield) of 6%, what is the bond's price?

3. A bond matures in 15 years with a $1,000 face value. The bond has a coupon rate of 12%, but payments are made semi-annually. Based on a yield of 9% in the marketplace, what is the bond's current price?

4. Before performing any calculations, what can be stated with certainty about the following bond? Face value 1,000. Coupon rate 9%. Yield 10%.

a.The bond will trade at a discount to face value.

b.The bond will be priced at a premium to face value.

c.The bond price will equal face value.

5. A bond with semi-annual coupon payments has the following characteristics: Par value of 10,000; coupon rate of 10% (annual); maturity date 30 years; yield of 9%. What is the current price?

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