Answering an essay question on a midterm examination, a finance student writes these two statements: Statement 1: The value of a fixed income security is the sum of the present values of all its expected future coupon payments. Statement 2: The steps in the bond valuation process are to estimate the bond’s cash flows, determine the appropriate discount rate, and calculate the present value of the expected cash flows. Should the instructor mark these statements correct or incorrect Statement 1 Statement 2（） ①A. Correct Correct ②B. Correct Incorrect ③C. Incorrect Correct

单项选择题An investor gathered the following information on three zero-coupon bonds: 1 - year, $600 par, zero-coupon bond valued at $571 2 - year, $600 par, zero-coupon bond valued at $544 3 - year, $10600 par, zero-coupon bond valued at $8901 Given the above information, how much should an investor pay tbr a $10000 par, 3 - year, 6 percent, annual-pay coupon bond（）

A. $10000.
B. $10600.
C. $10016.

单项选择题Consider a bond , par value $100 , that pays an annual coupon of 5 percent and that has three years remaining until maturity. Suppose the term structure of interest rates is flat at 6 percent. How much does the bond price change if the term structure of interest rates shifts down by 1 percent instantaneously（）

A. -2.67.
B. 2.67.
C. 0.00.