Question: Please answer these conceptual questions, I will be grateful if you help me and in retrun i ll make nice ratings please. Question 8 0

Please answer these conceptual questions, I will be grateful if you help me and in retrun i ll make nice ratings please.

Question 8 0 / 1 point

The price of a bond (with par value of $1,000) at the beginning of a period is $980 and at the end of the period is $985. What is the holding-period return if the annual coupon rate is 4.5%?

Question options:

a)

4.50%

b)

5.60%

c)

5.10%

d)

4.08%

e)

4.59%

Question 2 0 / 1 point

Consider two bonds, B and C. Both bonds presently are selling at their par value of $1,000. Each pays interest of $50 annually. Bond B will mature in 3 years, while bond C will mature in 10 years. If the yields to maturity on the two bonds change from 5% to 8%, ________.

Question options:

a)

both bonds will decrease in value but bond B will decrease more than bond C

b)

both bonds will not change in value.

c)

both bonds will increase in value but bond B will increase more than bond C

d)

both bonds will increase in value but bond C will increase more than bond B

e)

both bonds will decrease in value but bond C will decrease more than bond B

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