QUESTION 1 The bonds issued by Jensen & Son bear a 6 percent coupon, payable semiannually. The bond matures in 8 years and has a $1,000 face value. Currently, the bond sells at par. What is the yield to maturity? A. 5.87 percent B. 5.97 percent C. 6.00 percent D. 6.09 percent E. 6.17 percent QUESTION 2 A General Co. bond has an 8 percent coupon and pays interest annually. The face value is $1,000 and the current market price is $1,020.50. The bond matures in 20 years. What is the yield to maturity? A. 7.79 percent B. 7.82 percent C. 8.00 percent D. 8.04 percent E. 8.12 percent QUESTION 3 You intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months ( semiannual). If your nominal annual required rate of return is 10 percent with semiannual payments, how much should you be willing to pay for this bond? A. $ 826.31 B. $1,086.15 C. $ 957.50 D. $1,431.49 E. $1,124.62