9. A 5.50 percent coupon bond with 14 years left to maturity is priced to offer...

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9. A 5.50 percent coupon bond with 14 years left to maturity ispriced to offer a 5.20 percent yield to maturity.
You believe that in one year, the yield to maturity will be 4.80percent. What is the dollar change in price that
the bond will experience? (Assume semi-annual interest payments and$1,000 par value.)
A. less than – $10
B. less than $15 but more than – $10
C. less than $35 but more than $15
D. less than $70 but more than $35
E. more than $70

10. Consider a 20-year coupon bond with $65 annual coupons. Thenext coupon is due one year from today.
Assume that the yield curve is flat and so all yields are 7.5%, andyields are expected to remain constant over
the bond's life. Calculate the future value of the coupon payments.If all of the coupon payments are
reinvested at time of payment, how much interest will a bondinvestor have earned on the re-invested
coupons at the time of maturity?
A. less than $1,456
B. more than $1,456 but less than $1,518
C. more than $1,518 but less than $1,572
D. more than $1,572 but less than $1,654
E. more than $1,654

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9. A 5.50 percent coupon bond with 14 years left to maturity ispriced to offer a 5.20 percent yield to maturity.You believe that in one year, the yield to maturity will be 4.80percent. What is the dollar change in price thatthe bond will experience? (Assume semi-annual interest payments and$1,000 par value.)A. less than – $10B. less than $15 but more than – $10C. less than $35 but more than $15D. less than $70 but more than $35E. more than $7010. Consider a 20-year coupon bond with $65 annual coupons. Thenext coupon is due one year from today.Assume that the yield curve is flat and so all yields are 7.5%, andyields are expected to remain constant overthe bond's life. Calculate the future value of the coupon payments.If all of the coupon payments arereinvested at time of payment, how much interest will a bondinvestor have earned on the re-investedcoupons at the time of maturity?A. less than $1,456B. more than $1,456 but less than $1,518C. more than $1,518 but less than $1,572D. more than $1,572 but less than $1,654E. more than $1,654