1. What is the value of a bond that matures in 30 years, makes an annual coupon payment of $120, and has a par value of $1000? Assume a required rate of return of 9%, and round your answer to the nearest $10.
A) $1200
B) $1380
C) $1290
D) $1310
2. What is the value of a bond that matures in 8 years, has an annual coupon payment of $90, and has a par value of $1000? Assume a required rate of return of 6%, and round your answer to the nearest $10.
A) $2050
B) $2100
C) $1000
D) $1190