1. A bond with a 1000 face amount pays semiannual coupons at a rate of X% per year. The bond has 20 years to maturity, and is price to yield 6% compounded semi-annually. The bond’s price is 884.426140. Determine the bonds semi-annual coupon payment.
2. Suppose you purchase 480 shares of a stock at $28 per share, ignoring all commissions. Assume that the stock paid a dividend of $1.20 per share for the year. The stock price rose to $34 per share and was then sold at that price. WHat was the total dollar amount of the capital gain (or loss)?
A. $3,880
B. $576
C. $4,456
D. $690