9)

Seven years after buying the bond issued by the company in Question #8, you need to sell. The current YTM at the sale date is 2.45%. What is your sale price per $1,000 bond?

Multiple Choice

• $1,185.36

• $2,479.33

• $2,374.25

• $1,079.47

8)

Assume a company issues $35 Million of new 15-year bonds. The bonds have a coupon of 3.55%, paid semi-annually. The YTM on similar bonds is currently 3.75%. What is the total amount of money raised by the company from the bond issue?

Multiple Choice

• $ 34,202,482

• $ 35,596,631 (answer)

• $ 34,674,455

• $ 32,635,522