Compute what is 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 $400, 7 years to maturity and an annual coupon paid at a coupon rate of 6.9%, if it is trading at a yield of 4.3% p.a.?

Select one:

a. $461.74

b. $455.70

c. $457.59

d. $458.78

Problem 2: A company has issued a series of debentures which have a face value of $800 and pay a semi-annual coupon at a coupon rate of 9.0%. What is the value of each coupon payment?

Select one:

a. $18.00

b. $72.00

c. $36.00

d. $144.00

Reference no: EM132679329

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