1. The call price will exceed the par value by an amount called:
a. the redemption price
b. none of the answers is correct
c. the call discount
d. the call premium
e. the percentage of price
2. Coach Inc issues a 6 percent coupon bond with 8 years maturity and $1,000 face (par) value. If the yield to maturity of this bond is 8 percent, find the bond's price.
a. $885.07
b. $708.06
c. none of the answers is correct
d. $519.25
e. $778.87