1) The value of Bond #7 is closest to:

A. 99.697% of par

B. 101.153% of par

C. 99.936% of par

2) The value of Bond #8 is closest to:

A. 100.000% of par.

B. 98.116% of par.

C. 100.485% of par.

You also select the two floating-rate bonds issued by Varlep, plc given in Exhibit 5 . These bonds have a maturity of three years and the same credit rating. Exhibit5BondBond#7Bond#8CouponOne-yearLiborannually,setinarrears,cappedat5.00%One-yearLiborannually,setinarrears,flooredat3.50%Floating-RateBondsIssuedbyVarlep,plc You also select the two floating-rate bonds issued by Varlep, plc given in Exhibit 5 . These bonds have a maturity of three years and the same credit rating. Exhibit5BondBond#7Bond#8CouponOne-yearLiborannually,setinarrears,cappedat5.00%One-yearLiborannually,setinarrears,flooredat3.50%Floating-RateBondsIssuedbyVarlep,plc