Question

12. If coupon is 8% and maturity is 20 years, and the yield is 10% what is the price of this corporate bond on a semi annual basis?

a.	$828.41
b.	$932.04
c.	$1,102.62
d.	$1,105.94
e.	$1,106.78

   13.   Refer to question 12. If market interest rates are constant, what will the price of the corporate bond be in three years?

a.	$904.29
b.	$838.07
c.	$1,098.50
d.	$1,190.35
e.	$1,105.62

Answer 1