What is the market price of bond

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QUESTION 1. Route 66 has a 7.25 percent coupon bond outstanding that matures in 8.5 years. The bond pays interest semiannually. What is the market price per bond if the face value is $1,000 and the yield to maturity is 6.8 percent?

  • $899.80
  • $1,135.43
  • $967.24
  • $1,028.69
  • $1,029.15

QUESTION 2. Grand Adventure Properties offers a 10.2 percent coupon bond with annual payments. The yield to maturity is 15.1 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000?

  • 746.69
  • 835.62
  • 744.58
  • 953.30
  • 895.43

Reference no: EM131055715

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