A 4-year semi-annual 10% bond is trading in the marketplace. What is the present value of the principal (assuming a discount rate of 11.5%)?

1. a) 10%b) $80.50c) 11.5%d) $63.94

A $100,000, 9.85% corporate bond, maturing January 28, 2014, is bought on Tuesday, January 26, for 108.25. Assuming no holidays during that week, what is the total price the buyer pays for this bond?

1. a) $100,000.00b) $108,250.00c) $108,276.99d) $110,860.00

Please calculate the PV (present value) of the first coupon of a 5% four-year bond with a par value of $100, with a 6% discount rate or rate of return

1. a) $1.67b) $2.00c) $2.43d) $4.00

A provincial bond with an initial term of 25 years will mature in 2.5 years. The initial coupon rate was 6.5%. Today, another province is issuing a bond with the same maturity date as our 25-year bond and it is paying a coupon rate of 7.20%. What is the market value of the 2nd coupon of this bond?

1. a) $3.03b) $6.06c) $6.50d) $87.02