Question 1
What is the value of a six-year, 6% semiannual bond if market yields on similar bonds are 4%? The face value of the bond is $1,000.
◦ $1,099.26
◦ $1,028.17
◦ $1,104.83
◦ $1,105.75
◦ $1,000.02
Question 2
What is the yield to maturity for a four-year, 5% annual coupon bond selling for $965.34?
◦ 3%
◦ 4%
◦ 5%
◦ 6%
◦ 7%