21. What is the price of a 20-year semi-annual pay bond that has a coupon rate of 5.10% and was

issued 4 years ago? The yield to maturity on the bond is expected to be 3.86%.

$1.348.48

b. $1.084.65

$1,146.99

d.

$1,000.00

e.

$935.31

22. RFG Industries needs to raise $45.00 million by issuing bonds. It plans to issue a 20-year,

semi-annual pay bond that has a coupon rate of 5.07%. The yield to maturity on the bond is

expected to be 5.77%. How many bonds must RFG Industries issue? (Note: Your answer may

not be a whole number. In reality, a company would not issue part of a bond.)

a.

40.460

b.

41,458

44.621

d.

49,043

47,399