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What is the bond price

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1. Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest rate (rd) is 5.50%, based on semiannual compounding. What is the bond’s price?

A. $1,177.18

B. $1,024.15

C. $1,447.93

D. $1,106.55

E. $1,000.60

2. What's the rate of return you would earn if you paid $1,680 for a perpetuity that pays $85 per year?

A. 4.60%

B. 4.20%

C. 4.50%

D. 6.27%

E. 5.06%

Reference no: EM131927757

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