Reference no: EM132467313

Question 1: Bonds of Riverhawk Sport Authority (RSA) are selling in the market for $839.54. These bonds carry a 9 percent coupon paid semiannually, and have 20 years remaining to maturity. What is the bond's yield to maturity?

A.10.00%

B.9.50%

C.8.50%

D.9.00%

E.11.00%

F.10.50%

Question 2: How much did you borrow for your house if your monthly mortgage payment for a 30 year mortgage at 6.65% APR is $1,500?

A.$202,503

B.$249,235

C.$264,812

D.$233,658

E.$186,926

F.$218,080

Question 3: A bond with a face value of $1,000 has annual coupon payments of $100. It was issued 10 years ago and has 7 years remaining to maturity. The current market price for the bond is $1,000. Which of the following is true:

I. Its YTM is 10%.
II. Bond's coupon rate is 9.5%.
III. The bond's market quote is 95.70. (Note: Market quote is the market price as a percent of the face value.)

A.I, II, and III

B.I, II Only

C.I, III Only

D.I Only

E.III Only

F.II, III Only