Bond value--semiannual payment Answer: c Diff: E N
70. A 12-year bond has an 8 percent semiannual coupon and a face value of $1,000. The bond pays a $40 coupon every six months. The bond has a nominal yield to maturity of 7 percent. What is the price of the bond?
a. $1,114.69
b. $ 761.72
c. $1,080.29
d. $ 655.92
e. $1,079.43
Bond value--quarterly payment Answer: c Diff: E
71. A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If your nominal annual required rate of return is 12 percent with quarterly compounding, how much should you be willing to pay for this bond?
a. $ 941.36
b. $1,051.25
c. $1,115.57
d. $1,391.00
e. $ 825.49
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