1)How much will the coupon payments be of a 20-year $1,000 bond with a 9.5% coupon rate and quarterly payments?

A.$23.75

B.$95.00

C.$7.92

D.$47.50

2) A $5,000 bond with a coupon rate of 5.5% paid semiannually has ten years to maturity and a yield to maturity of 6.6%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

A.rise by

$ 285.39

B.fall by

$342.47

C.rise by

$ 399.55

D.fall by

$ 285.39