2. A $1,000 par value bond has coupon rate of 7% and the coupon is paid semi-annually. The bond matures in 20 years and has a required rate of return of 10%. Compute the current price of this bond

$1,011.00

$1,000.00

$ 742.61

$1,199.22

$1,230.57

A consol currently trades at $350.00. If investors require a return of 12 percent, what is the annual coupon payment on the bond?

	$115.00
	$ 18.50
	$ 22.51
	$ 47.29
	$ 42.00