1. 10% annual coupon.20 year bond. Par is $1000. What is the present value of the Par portion of the total value at the time of issuance?
a. 177 b. 198 c. 231 d. 142
2. 10% annual coupon.20 year bond. Par is $1000.One year into the bond’s life (19 years to maturity), the market rates are cut down to 8.5%.What is the value of the bond?
a. 1139 b. 1054 c. 1007 d. 954
3. 6% coupon.25 year bond.Pays semiannually. $1000 par. Price is $1,300. What is the Yield to Maturity?
a. 2.2026% b. 1005 c. 4.075% d. 798