17. J&J Manufacturing issued a bond with a $1,000 par value. The bond has a coupon rate of 7% and makes payments semiannually. If the bond has 30 years remaining and the annual market interest rate is 9.4%, what will the bond sell for today?

a. $760.91

b. $861.29

c. $937.42

d. $1,000.00

e. $1,025.32

18. You are considering the purchase of an AT&P bond with a 13% coupon rate. Interest is paid and compounded semiannually. The bond will mature in 8 years and has a $1,000 face value. The bond currently sells for $867. Calculate the annual yield to maturity for this bond. (Round to nearest percentage)

a. 9%

b. 11%

c. 16%

d. 18%