A $1,000,000 issue of 10-year bond redeemable at par offers 8.5% coupons payable semi-annually with a yield at 6.3% compounded monthly. Answer the following questions, and choose the closest answer from the possible choices following each question:

What is the market yield of the bond? (Express in percentage with four decimal places i.e., .0001%)

Answer 1

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What is the coupon rate (or bond rate) of the bond? (Express in percentage with four decimal places i.e., .0001%) Answer 2

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Which rate over each payment interval do you use for calculating the purchase price manually using the formula approach? (Express in percentage with four decimal places i.e., .0001%)

Answer 3

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What is the purchase price of the bond?

Answer 4

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This is a bond selling at ______ (choose from "par," "a premium," or "a discount")

Priyanka Na 4.2500% $533,470.23 None of these 0.5250% a discount $14,617,269.05 3.1916% 8.500096 $763,692.22 $1,154,704.16 $42.500 $1,497,140.78 pons payable semi-annually a premium at par He closest answer from the $1.174,531.68 63000% $87.763.71 ar decimal placesie Choose Quiz navigatior 2 3 4 7 8 entage with four decimal Choose Finish attempt Time left 1:18:02 purchase price manually al places le, .00019) Choose Choose a discount) Choose NE (hp Priyanka Choose... $1,000,000 4.2500% $533,470.23 None of these 0.5250% a discount $14,617,269.05 3.1916% 8.5000% $763,692.22 $1,154,704.16 le semi-annually $42,500 nswer from the $1,497, 140.78 a premium at par $1,174,531.68 aces i.e. Choose... Quiz navigatic 1 2 3 4 6 9 . our decimal Choose Finish attempt ice manually 00019) Choose Time left 1:18:16 Choose Choose