Transcribed Image Text
1. A bond with 10 years to maturity has a face value of $1,000.The bond can be called in four years for $1050. The bond pays an 6percent semiannual coupon, and the bond has a 3.3 percent nominalyield to maturity. What is the price of the bond todayassuming that it will be called?2.A corporate bond that matures in 12 years pays a 9 percentannual coupon, has a face value of $1,000, and a current price of980. The bond can first be called four years fromnow. The call price is $1,050. What is thebond’s yield to call?a. 10.01%b. 5.36%c. 10.71%d. 11.86%e. None ofthe above3.You just purchased a $1,000 par value, 9-year, 7 percent annualcoupon bond that pays interest on a semiannualbasis. The bond sells for $920. What is the bond’snominal yield to maturity?a. 7.28%b. 8.28%c. 9.60%d. 8.67%e. 4.13%f. Noneof the above