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2. Total for this question: 2 marks A bond has a face value of $1,000 and pays fixed interest of $50 every six months. The

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2. Total for this question: 2 marks A bond has a face value of $1,000 and pays fixed interest of $50 every six months. The bond is due in 5 years. The current market rate of interest is 12%. Required: 1. What is the interest rate of the bond in % under the face value; 2. What is the present value of the periodic interest payments? A. B. C. D. $368.00 $279.00 $180.25 $283.50

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