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  3. 5. a tem-year corpoate bond has a 7 percent coupon

5. A tem-year corpoate bond has a 7 percent coupon rate. What should be the...

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5. A tem-year corpoate bond has a 7 percent coupon rate. What should be the bond's price today if the required return is 8 percent and the bond pays interest annually? Face value $1,000 A. $932.05 B. $901.82 c $1,243.33 D. $932.90 E. $1,000.00 6. A corporate bond has a coupon rate of 10 percent, a required return of 8 percent, and a face value of $1,000. This bond's price is: A. Less than $1,000 B. More than $1,000 C. $1,000 D. $920 E. not possible to determine from the information given. 7. Aten-year bond has a 6% coupon rale (paid seniannually, a current price orsi,015.00, a face value of $1,000. What is the bond's YTM? A. 2.70% B, 5.87% C. 290% D. 5.40% 0352 A E.5.80% 8. You are trying to compare the price sensitivity of two bonds. Bond A is a zero-coupon bond with four years remaining until maturity. Bond B is a coupon bond with four years remaining until maturity. Which bond has the higher price sensitivity? A. Bond A B. Bond B C. Both bonds have same price sensitivity D. Impossible to tell with information given 12 8

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