Par portion of the total value at the time of issuance

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1. 10% annual coupon.20 year bond. Par is $1000. What is the present value of the Par portion of the total value at the time of issuance?

a. 177       b. 198      c. 231         d. 142

2. 10% annual coupon.20 year bond. Par is $1000.One year into the bond’s life (19 years to maturity), the market rates are cut down to 8.5%.What is the value of the bond?

a. 1139          b. 1054           c. 1007         d. 954

3. 6% coupon.25 year bond.Pays semiannually. $1000 par. Price is $1,300. What is the Yield to Maturity?

a. 2.2026%      b. 1005       c. 4.075%        d. 798

Reference no: EM131972740

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