Bond value--semiannual payment Answer: d Diff: M
90. An 8 percent annual coupon, noncallable bond has 10 years until it matures and a yield to maturity of 9.1 percent. What should be the price of a 10-year noncallable bond of equal risk that pays an 8 percent semiannual coupon? Assume both bonds have a par value of $1,000.
a. $ 898.64
b. $ 736.86
c. $ 854.27
d. $ 941.09
e. $ 964.23
Bond value--semiannual payment Answer: a Diff: M N
91. A bond with 12 years to maturity has a 7 percent semiannual coupon and a face value of $1,000. (That is, the bond pays a $35 coupon every six months.) The bond currently sells for $1,000. What should be the price of a bond with the same risk and maturity that pays a 7 percent annual coupon and has a face value of $1,000?
a. $ 990.33
b. $ 996.50
c. $1,000.00
d. $1,002.29
e. $1,012.82
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