Reference no: EM132966195

On January 4th, 2017, Zack purchased a corporate bond of FGH Inc. at its market price of $1025. The bond pays a 4.15 percent coupon rate, which is paid out semi-annually, based on its face value of $1,000. The bond will mature on July 5th, 2024.

Problem 1: What would be dollar amount of each semi-annual coupon?

Option 1: $20.75

Option 2: $21.25

Option 3: $21.76

Option 4: $22.50

Option 5: $23.15

Problem 2: Based on the purchase price, what would be the current yield that Zack would be receiving on these bonds?

Option 1: 3.85%

Option 2: 4.05%

Option 3: 4.19%

Option 4: 3.97%

Option 5: 4.72%

Problem 3: What is the current yield to maturity that he would be receiving?

Option 1: 4.02%

Option 2: 4.23%

Option 3: 4.12%

Option 4: 3.92%

Option 5: 3.88%