1. Assume Apple issued bonds with a 20 year maturity at a coupon rate of 8.4 percent. The bonds make semiannual payments, and the YTM on these bonds is 7.5 percent.

What is the semiannual coupon payment?

A.$37.50

B.$42

C.$84

D.$75

2. Is the bond trading at par, discount, or premium?

A.Par

B. Discount

C.Premium

D.All the above

3. What is the yield that should be used to calculate the bond price?

A. 7.5%

B.4.35%

C. 8.4%

D.4.8%

4. What is the face value of this bond?

A. $1000

B.$10000

C.$500

D. $100

5. What is the price of the bond?

A.$1,092

B.$1,000

C.$633.80

D.$913.52