What is the clean price of bond

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1. A friend wants to borrow money from you. He states that he will pay you $2,700 every 6 months for 9 years with the first payment exactly 5 years and six months from today. The interest rate is 7.3 percent compounded semiannually. What is the value of the payments today?

$23,193.74

$24,729.49

$25,395.75

$23,711.08

$24,576.53

2. You purchase a bond with an invoice price of $1,077. The bond has a coupon rate of 5.9 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. The par value is $1,000. What is the clean price of the bond?

$1,067.17

$1,047.50

$1,086.83

$1,106.50

$1,057.33

Reference no: EM131976725

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