12.What is the yield of a 1-year pure discount bond with a price of $850 and a face value of $1,000? (a)8.50% (b)9.09% (c)15.00% (d17.65% Answer:(d) 13.What is the yield of a 1-year pure discount bond with a price of $900 and a face value of $1,000? (a)5.26% (b)10.00% (c)11.11% (d15.79% Answer:(c) 14.Consider a four-year pure discount bond with a face value of $1,000.If its current price is $850, compute its annualized yield. (a)1.17% (b)4.15% (c)5.57% (d17.60% Answer:(b) 15.Consider a three-year pure discount bond with a face value of $1,000.If its current price is $900, compute its annualized yield. (a)1.036% (b)1.111% (c)3.57% (d5.41% Answer:(c) 8-48-4 12. What is the yield of a 1-year pure discount bond with a price of $850 and a face value of $1,000? (a) 8.50% (b) 9.09% (c) 15.00% (d) 17.65% Answer: (d) 13. What is the yield of a 1-year pure discount bond with a price of $900 and a face value of $1,000? (a) 5.26% (b) 10.00% (c) 11.11% (d) 15.79% Answer: (c) 14. Consider a four-year pure discount bond with a face value of $1,000. If its current price is $850, compute its annualized yield. (a) 1.17% (b) 4.15% (c) 5.57% (d) 17.60% Answer: (b) 15. Consider a three-year pure discount bond with a face value of $1,000. If its current price is $900, compute its annualized yield. (a) 1.036% (b) 1.111% (c) 3.57% (d) 5.41% Answer: (c)