________ 16. Seven years ago, Peterborough Trucking issued 15-year bonds with a face value of $1,000 each. Today,

the market rate of return on these bonds is 7.9 percent and the market price is $984.20 The bonds pay

interest semi-annually. What is the coupon rate?

a. 6.67 percent b. 6.85 percent c. 7.63 percent d. 7.76 percent

________ 18. Today, you paid a total of $1,108.16 to purchase a $1,000 bond. The bond has a 6 percent coupon and pays

interest semi-annually. The next interest payment is 4 months from today. What is the clean price of this

bond?

a. $1,088.16 b. $1,098.16 c. $1,108.16 d. $1,128.16