16.Consider a five-year pure discount bond with a face value of $1,000.If its current price is $780,what is its annualized yield? (a)5.09% (b)2.82% (c)1.28% (d1.05% Answer:(a) 17.A obligates the issuer to make periodic payments of interest to the bondholder for the life of the bond and then to pay the face value of the bond when the bond matures. (a)pure discount (b)zero-coupon (c)perpetual bond (d)coupon bond Answer:(d) 18.The of the bond is interest rate applied to the of the bond to compute the periodic payment. (a)coupon rate:face value (b)maturity rate;face value (c)coupon rate;price (d)maturity rate;price Answer:(a) 19.For a bond with a face value of $1,000 and coupon rate of 11%,what is the annual coupon payment? (a)$100 (b)$110 (c)$1,000 (d$1,100 Answer:(b) 8-58-5 16. Consider a five-year pure discount bond with a face value of $1,000. If its current price is $780, what is its annualized yield? (a) 5.09% (b) 2.82% (c) 1.28% (d) 1.05% Answer: (a) 17. A ________ obligates the issuer to make periodic payments of interest to the bondholder for the life of the bond and then to pay the face value of the bond when the bond matures. (a) pure discount (b) zero-coupon (c) perpetual bond (d) coupon bond Answer: (d) 18. The ________ of the bond is interest rate applied to the ________ of the bond to compute the periodic payment. (a) coupon rate; face value (b) maturity rate; face value (c) coupon rate; price (d) maturity rate; price Answer: (a) 19. For a bond with a face value of $1,000 and coupon rate of 11%, what is the annual coupon payment? (a) $100 (b) $110 (c) $1,000 (d) $1,100 Answer: (b)