Clean price of this bond if the market rate of return

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1. LIAS Inc. bonds have a face value of $1,000, mature in 17 years, pay interest semiannually, and have a coupon rate of 6.35 percent. The next interest payment will be paid 4 months from today. What is the clean price of this bond if the market rate of return is 6.5 percent?

$989.55

$979.45

$984.70

$993.40

$995.28

2. Describe each of the following bearish strategies, being sure to explain why each is bearish and the potential for gain and loss under each strategy:

-Selling a stock short

-Writing a call option

-Buying a put option

Reference no: EM131998904

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