Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with a yield to maturity of 6.29%. a. Is this bond currently trading at a discount, at par, or at a premium? Explain. b. If the yield to maturity of the bond rises to 7.18% (APR with semiannual compounding), what price will the bond trade for? a. Is this bond currently trading at a discount, at par, or at a premium? Explain. (Select the best choice below.) O A. Because the yield to maturity is less than the coupon rate, the bond is trading at a premium. O B. Because the yield to maturity is less than the coupon rate, the bond is trading at a discount. O C. Because the yield to maturity is greater than the coupon rate, the bond is trading at a premium. O D. Because the yield to maturity is greater than the coupon rate, the bond is trading at par. b. If the yield to maturity of the bond rises to 7.18% (APR with semiannual compounding), what price will the bond trade for? The new price of the bond is $ (Round to the nearest cent.)

7. A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price this bond will trade at? A) $4937 B) $5760 C) $6582 D) $4114

Suppose a​ seven-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading with a yield to maturity of 6.48%.

Question 2A. A bond has a face value of $2000, a coupon rate of 6% and matures in 10years’ time. If its current yield to maturity is 8% what is the current price ofthe bond? If the yield falls to 4% determine the bond price. What do theseresults indicate about the relationship between the price of a bond and itsyield to maturity? B. You are asked to put a value on a bond which promises eight annual couponpayments of £70 and will repay its face value of £1000 at the end of eightyears. You observe that other similar bonds have yields to maturity of 9 percent. How much is this bond worth? You are offered the bond for a priceof £1030.44. What yield to maturity does this represent? C. Explain in detail the trade-off model of capital structure. In light of the currentglobal financial challenge, discuss which elements of the model areexpected to become most prevalent?

Which of the following statements is CORRECT? A 15-year bond with a face value of $1,000 currently sells for $950. Question 36 options:               a) The bond's current yield is equal to its coupon rate.     b) If the yield to maturity stays constant until the bond matures, the bond's price will remain at $850.     c) The bond's yield to maturity is greater than its coupon rate.     d) The bond's current yield exceeds its yield to maturity.     e) The bond's coupon rate exceeds its current yield.

Sunnyfax Publishing pays out all its earnings and has a share price of $37.00. In order to expand, Sunnyfax Publishing decides to cut its dividend from $3.00 to $2.00 per share and reinvest the retained funds. Once the funds are reinvested, they are expected to grow at a rate of 14%. If the reinvestment does not affect Sunnyfax's equity cost of capital, what is the expected share price as a consequence of this decision? O$45.87 $40.14 $68.81 $57.34

Suppose a seven-year, $1,000 bond with a(n) 10.19% coupon rate and semiannual coupons is trading with a yield to maturity of 8.81%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 9.44% (APR with semiannual compounding), at what price will the bond trade?