1. A company issues a 10 percent coupon bond with 17 years maturity and $1,000 face (par) value. If the yield to maturity of this bond is 6 percent, find the bond's price.
a. $1,419.09
b. $1,135.27
c. $832.53
d. $1,248.80
e. none of the answers is correct
2. A company issues a 8 percent coupon bond with 5 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond is 4 percent, find the bond's price.
a. $943.72
b. none of the answers is correct
c. $1,179.65
d. $1,038.09
e. $692.06