Question 1
XYZ's corporate bonds mature in 20 years, have a par value of
$1,000, and an annual coupon rate of 8% (paid on an annual basis).
The market requires an interest rate of 7% (annual) on these bonds.
What is the bond's price (report answer as a positive number)?
$1,066.32
$1,118.01
$1,241.89
$1,105.94
None of the above.
Question 2
A corporate bond has a maturity of ten years, face value of
$1,000, and an annual coupon rate of 6.75%....