1. Company X is issuing bonds. They plan to issue 10,000, $1000 par, 7% bonds that pay semi-annual for 5 years. What are the proceeds from this bond sale if the market rate is 8%?

2. Company X is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pay semi-annual for 5 years. If the bond price is $980, what is the market annual rate-of-return? (percentage, 2 decimals, e.g. xx.xx)

3. Assume you will make $40,000/year with a high school diploma. You will make $70,000/year with accounting degree. Assume you work for 40 years and earn 8%. How much is that accounting degree worth? (hint: compare PVs)

4. If the price of the bond is the same as the par value, then the bond is a:

Group of answer choices a. premium bond. b. discount bond c. at par bond