Bonds outstanding that are currently quoted at price

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Reference no: EM131348235

1. Green Roofing Materials has 7.5% bonds outstanding that are currently quoted at a price of $1,087 each. The bonds pay interest on December 1 and June 1. What is the cash price of this bond if today's date is May 1? There are 182 days from Dec. 1 to June1, 183 days from June 1 to Dec. 1, 151 days from Dec. 1 to May 1, and 31 days from May 1 to June 1.

A. $1,099.50

B. $1,105.75

C. $1,112.00

D. $1,118.11

E. $1,124.50

2. You buy an 8-year $1,000 par value bond today that has a 6% yield and a 6% annual payment coupon. In 1 year promised yields have risen to 7%. Your 1-year holding-period return was ___.

A. 0.61%

B. -5.39%

C. 1.28%

D. -3.25%

Reference no: EM131348235

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