1. Lambert, Inc. bonds have a face value of $1,000. The bonds carry a 9 percent coupon, pay interest semiannually, and mature in 10 years. What is the current price of these bonds if the yield to maturity is 8 percent? (Choose the closest answer)
a. $1,020.15
b. $1,067.95
c. $710.36
d. $1,141.04
e. $705.14
2. An 8 percent $1,000 bond matures in 4 years, pays interest semiannually, and has a yield to maturity of 12 percent. What is the current market price of the bond? (Choose the closest answer)
a. $875.80
b. $801.38
c. $970.69
d. $768.76
e. $910.27