1. Seattle seafood company has an issue of 5 years, 9% annual coupon bonds outstanding. The bonds, which were originally issued by 15 years ago have a face value (FV) of $1000, a yield to maturity (YTM) of 12% nad are noncallable. What is the current market price of SSC's bonds?
a. $891.86
b. $758.08
c. $981.05
?d. 1,114.83
2. Are the bonds of seattle company selling at a discount, at par, or at a premium?
a. Par
b. Premium
c. Discount
?3. What is the current yield on seattle seafood company's outstanding bonds?
a. 9.17%
b. 10.09%
c. 8.07%
d. 11.87%
?4. What is the expected one year capital gain yield on the bonds of seattle seafood company?
a. 1.73%
b. 2.25%
c. 1.53%
d. 1.91%