1. A bond offering an annual coupon rate of 6%, paying interest semiannually, matures in 6 years. Given that the market discount rate is 4%, which of the following is most likely to be the price of the bond?

A. $94.8.

B. $105.6.

C. $110.5.

2. The bond is most likely to be priced at a premium above par value when:

A. Coupon rate < Market discount rate

B. Coupon rate = Market discount rate

C. Coupon rate > Market discount rate

3. An investor who owns a bond with a 10% coupon rate that pays interest semiannually and matures in four years is considering selling it. If the required rate of return on the bond is 12%, the price of the bond per $100 of par value is closest to:

A. $93.79.

B. $100.00.

C. $106.34.