1)Assuming a current discount rate of 99 and semi-annual coupons, what is the present value of the first coupon of an 89, 5-year, bond with a face value of $1000? A) $3.83 B) $2.58 C) $3.85 D) $7.34 2Which statement is true when the current market yield is lower than the bond coupon? A)Extendible bondholders should exercise the call feature of their bond B)Callable bond issuers should not exercise the extension feature of the bond C)Extendible bondholders should not exercise the call feature of their bond D)Retractable bondholders should not exercise the retraction feature of the bond