An 8% coupon, $100 par value bond matures in 2 years and is selling at $98.79 to yield

Consider a $100 par value bond. It has a 6% coupon paid annually and 10 years to maturity. The bond is valued at $102.08 today with a discount rate of 5.5%. One day later, the discount rate increases to 6.5%. Assuming the discount rate remains at 6.5% over the remaining life of the bond, the price of the bond between today and maturity will most likely:

A. Decline then remain unchanged.

B. Decline then rise.

C. Rise then decline.

Tapper, Inc. has two $1,000 par value bonds outstanding that both sell for 758.18. The first issue has 15 years to maturity and an annual coupon of 6%. The second issue has the same yield to maturity as the first one, pays annual interest as well, but has only 5 years remaining till maturity. The annual interest payment on the second issue is closest to:

A. $25.23.

B. $27.83.

C. $29.46.

Tiffany Zheng purchased a $1,000 par value, 0% coupon bond with 16 years to maturity one year ago. The YTM (semiannually compounding) was 6.0%. Now one year later, with market rates remaining the same, Zheng purchases an annuity with a semiannual payment of $30 for 15 years. Which of the following gives the closest combined value of the two investments based on the 6% semiannual yield?

A. $1,000.

B. $27.83.

C. $29.46.

Assuming an annual discount rate of 5%, which of the following is closest to the value of a 10-year, 6% coupon, $1000 par value bond with semi-annual payments?

A. $1077.2.

B. $1077.9.

C. $1075.0.