Question: PLEASE ANSWER ALL QUESTIONS FOR 5 STAR REVIEW!!!!! QUESTION #1 - A 10-year corporate bond has an annual coupon of 9%. The bond is currently

PLEASE ANSWER ALL QUESTIONS FOR 5 STAR REVIEW!!!!!

QUESTION #1 -

A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000). Which of the following statements is CORRECT? O a. The bond's expected capital gains yield is zero. b The bond's current yield is above 9%. c. lfthe bond's yield to maturity declines, the bond will sell at a discount. d. The band's current yield is less than its expected capital gains yield. OOO e. The band's yield to maturity is above 9%. Last year Andrea purchased a $1,000 face value corporate bond with an 8% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 7.04%. If Janet sold the bond today for $1,084.39, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. \"/0 An investor purchased the following five bonds. Each bond had a par value of $1,000 and an 8% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 7%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table Enter all amounts as positive numbers. Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers to two decimal places. Price @ 8% Price @ 7% Percentage Change lo-year, 10% annual coupon $ $ o/u lo-year zero 5-year zero 30-year zero $100 perpetuity A 7% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 7.4084%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places. Bond's price: $ YTM: %A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT? O a. The bonds current yield is greater than 9%. O b. The bond is selling at a discount. 0 c. If the yield to maturity remains constant, the bond's price one year from now will be higher than its current price. C d. The bond is selling below its par value. @ e. If the yield to maturity remains constant, the bond's price one year from now will be lower than its current price. You read in The Wall Street Journal that 30-day Tbills are currently yielding 5.1%. Your brother-in-Iaw, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 3.50% Liquidity premium = 1.2% Maturity risk premium = 2.15% Default risk premium = 2.60% On the basis of these data, what is the real riskfree rate of return? Round your answer to two decimal places. /u A Treasury bond that matures in 10 years has a yield of 5.25%. A 10-year corporate bond has a yield of 9.75%. Assume that the liquidity premium on the corporate bond is 0.45%. What is the default risk premium on the corporate bond? Round your answer to two decimal places. /o

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