A $44 000, 8.9% bond is purchased 4 years before maturity to yield 2.6% compounded semi-annually. The bond interest is payable semi-annually. How should we expect this bond to sell?

a. Premium (bond rate = 8.9% > 2.6% = market rate)

b. Premium (bond rate = 8.9% < 2.6% = market rate)

c. Discount (bond rate = 8.9% < 2.6% = market rate)

d. Discount (bond rate = 8.9% > 2.6% = market rate)

e. At par Premium (bond rate = 8.9% = 2.6% = market rate)

A $9100 bond bearing interest at 5.3% payable semi-annually is due in 4 years. Money is worth 5.9% compounded semi-annually.What is the bond rate?

a. 5.9% compounded semi-annually

b. 5.3% payable semi-annually