After issue at the same yield rate

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1. Calculate the current price of a $1,000 par value bond that has a coupon rate of 20 percent, pays coupon interest semi-annually, has 27 years remaining to maturity, and has a current yield to maturity (discount rate) of 9 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).

2. A $100 par value 10-year bond provides coupons at 5% convertible semiannually. The yield rate is 4% convertible semiannually. What is the flat price 8.4 years after issue at the same yield rate (assuming compound interest)?

Reference no: EM132029576

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