1. LIAS Inc. bonds have a face value of $1,000, mature in 17 years, pay interest semiannually, and have a coupon rate of 6.35 percent. The next interest payment will be paid 4 months from today. What is the clean price of this bond if the market rate of return is 6.5 percent?
$989.55
$979.45
$984.70
$993.40
$995.28
2. Describe each of the following bearish strategies, being sure to explain why each is bearish and the potential for gain and loss under each strategy:
-Selling a stock short
-Writing a call option
-Buying a put option