1. What is the current price of commercial paper with face value of $1,000 that matures in 90 days and has an interest rate of 4%?

a. $990.00 b. $937.27 c.$1,010.00 d.$900.00

2. You want to buy a 5% coupon bond whose clean price is $975.00. The bond pays dividends on January 1 and July 1. What price do you pay if you buy the bond on May 8? (Assume 30/360)

a. $992.64 b. $975.00 c. $1,000.00 d.$957.36