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Question 1: Briar Corp is issuing a 10-year bond with a coupon rate of 8...

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Finance

Question 1: Briar Corp is issuing a 10-year bond with a coupon rate of 8 percent. The interest rate for similar bonds is currently 9.52 percent. Assuming annual payments, what is the present value of the bond? (Round to the nearest dollar.)

A) None of the above

B) 872

C) 1066

D) 990

Question 2: Regatta Inc. has seven-year bonds outstanding that pay an 8.25 percent coupon rate. Investors buying these bonds today can expect to earn a yield to maturity of 7.875 percent. How much will you be willing to pay for Regatta's bond today? Assume annual coupon payments.

Question 3:

A) None of these

B) $1,014

C) $1,066

D) $972

Question 4: Highland Corp., a U.S. company, has a ten-year bond whose yield to maturity is 8.5 percent. The bond has no coupon payments. What is the price of this zero-coupon bond? (Assume semi-annual compounding for these zero-coupon bonds.)

A) None of the above

B) $927.83

C) $726.27

D) $890.45

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