Which of the following bonds will be most sensitive

Which of the following bonds will be most sensitive to a change in interest rates?Question 1 options:A) a ten-year bond with a $2000 face value whose yield to maturity is 5.8% and coupon rate is 5.8% APR paid semiannuallyB) a 15-year bond with a $5000 face value whose yield to maturity is 7.4% and coupon rate is 6.2% APR paid annuallyC) a 20-year bond with a $3000 face value whose yield to maturity is 6.0% and coupon rate is 5.4% APR paid semiannuallyD) a 30-year bond with a $1000 face value whose yield to maturity is 5.5% and coupon rate is 6.4% APR paid annuallyQuestion 2 (2 points)A $1000 bond with a coupon rate of 5.4% paid semiannually has five years to maturity and a yield to maturity of 7.5%. If interest rates rise and the yield to maturity increases to 7.8%, what will happen to the price of the bond?Question 2 options:A) fall by $9.82B) fall by $11.59C) rise by $12.16D) The price of the bond will not change.Question 3 (2 points)A company issues a ten-year bond at par with a coupon rate of 6% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 7.8%. What was the percentage change in the price of the bond over the past two years?Question 3 options:A) 11.81%B) -43.04%C) -10.56%D) 75.55%Question 4 (2 points)What is the coupon rate of a two-year, $10,000 bond with semiannual coupons and a price of $9543.45, if it has a yield to maturity of 6.8%?Question 4 options:A) 4.32%B) 5.60%C) 6.25%D) 8.44%Question 5 (2 points)A corporate bond which receives a BBB rating from Standard and Poor’s is consideredQuestion 5 options:A) a junk bond.B) an investment grade bond.C) a defaulted bond.D) a high-yield bond.Question 6 (2 points)Spacefood Products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 3% per year each year in the future. What will be the current value of a single share of Spacefood’s stock if the firm’s equity cost of capital is 10%?Question 6 options:A) $24.00B) $23.97C) $30.22D) $34.29Question 7 (2 points)Valence Electronics has 217 million shares outstanding. It expects earnings at the end of the year of $760 million. Valence pays out 40% of its earnings in total?15% paid out as dividends and 25% used to repurchase shares. If Valence’s earnings are expected to grow by 6% per year, these payout rates do not change, and Valence’s equity cost of capital is 8%, what is Valence’s share price?Question 7 options:A) $10.51B) $24.40C) $56.60D) $70.05Question 8 (2 points)JRN Enterprises just announced that it plans to cut its dividend from $2.50 to $1.50 per share and use the extra funds to expand its operations. Prior to this announcement, JRN’s dividends were expected to grow at 4% per year and JRN’s stock was trading at $25.00 per share. With the new expansion, JRN’s dividends are expected to grow at 8% per year indefinitely. Assuming that JRN’s risk is unchanged by the expansion, the value of a share of JRN after the announcement is closest to:Question 8 options:A) $25.00B) $15.00C) $31.25D) $27.50Question 9 (2 points)Jumbuck Exploration has a current stock price of $2.00 and is expected to sell for $2.10 in one year’s time, immediately after it pays a dividend of $0.26. Which of the following is closest to Jumbuck Exploration’s equity cost of capital?Question 9 options:A) 9%B) 12%C) 18%D) 22%Question 10 (2 points)Which of the following is NOT a method by which a company can increase its dividend payments?Question 10 options:A) It can issue more shares.B) It can increase its earnings.C) It can decrease the number of shares outstanding.D) It can increase its dividend payout rate.