Question 1
What is the current price of a $1,000, 5% coupon bond that pays interest semi-annually if the bond matures in ten years and has a yield-to-maturity of 7.5%?
◦ $8128.40
◦ $826.30
◦ $897.34
◦ $766.20
Question 2
What is the yield-to-maturity of a $1,000, 6% semi-annual coupon bond that matures in 6 years and currently sells for $966.66?
◦ 3.34%
◦ 6.41%
◦ 6.68%
◦ 9.67%