1. Johnson Construction Inc. has issued 20-year $1,000 face value, 10% annual coupon bonds, with a yield to maturity of 9%. The current price of the bond is ________.
$1,091.28
$1,196.36
$1000.00
$829.73
2. Ten years ago, Thompson Tarps Inc. issued twenty-five-year 10% coupon, paid semiannually, bonds with a $1,000 face value each. Since then, interest rates in general have decreased and the yield to maturity on the Thompson bonds is now 8%. Given this information, what is the price today for a Thompson Tarps bond?
$1,172.92
$1,171.19
$846.27
$847.87