Compute what is the value of a bond with a face value

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Problem 1: What is the value of a bond with a face value of $900, 7 years to maturity and a semi-annual coupon paid at a coupon rate of 8.0%, if it is trading at a yield of 3.8% p.a.?

Select one:

a. $1128.56

b. $1121.62

c. $1123.49

d. $1130.43

Problem 2: What is the value of a preference share that pays an annual dividend of $10.00 if the required rate of return is 6.8% p.a.?

Select one:

a. $148.55

b. $150.39

c. $9.36

d. $147.06

Reference no: EM132679332

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