1.

Do not do any interim rounding. Answers are stated to four places to the right of the decimal point once converted to a percentage.

Hattie Turner purchased Modius Inc.'s 12-year, 2 5/8% bonds 4 years ago. She is considering selling them and noted the current price of the bonds is $98.50 per $100. At this price, the yield to maturity is closest to:

		2.8359%.
		2.7728%.
		3.0260%.

2.

Do not do any interim rounding. Choose the best answer.

Chailbis Co filed with the SEC to offer $150.0 million par value of 15-year bonds with a 5.75% coupon. In the time since the memorandum was filed with the agency, interest rates have risen and the investment group underwriting the issue informs Chailbis' CFO the bonds will have to be sold at a yield to maturity of 6.10%. The amountChailbis will raise in the sale of the bonds is closest to:

	A.	$146,877,595.
	B.	$144,887,979.
	C.	$144,934,221.