What is the price today for a thompson tarps bond

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1. Johnson Construction Inc. has issued 20-year $1,000 face value, 10% annual coupon bonds, with a yield to maturity of 9%. The current price of the bond is ________.

$1,091.28

$1,196.36

$1000.00

$829.73

2. Ten years ago, Thompson Tarps Inc. issued twenty-five-year 10% coupon, paid semiannually, bonds with a $1,000 face value each. Since then, interest rates in general have decreased and the yield to maturity on the Thompson bonds is now 8%. Given this information, what is the price today for a Thompson Tarps bond?

$1,172.92

$1,171.19

$846.27

$847.87

Reference no: EM131862994

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