1. A broker calls you with a GE bond for sale. He says that the coupon rate is 3.25%, and that maturity is in October 2032. You observe that a comparable market rate is 2.2%. Calculate the value of the annuity portion of the bond, the principal repayment and the total value of the bond. (round interest rates in your calculation to 2 decimal places).

A. $1,590.86, $823.47 and $2,414,33

B. $290.31, $803.48, $1093.79

C. $144.51, $804.43, $948.94

D. $32.50, $1,000 and $1,032.50

2. Ignoring your computed value of the bond above in #1, you notice that the broker is offering the bond for sale at 105.00. At that quote, what do you estimate will be your YTM on the bond? a. 12.0% b. 1.33% c. 2.67% d. 3.25%