A $6600 bond bearing interest at 5.5% payable semi-annually is due in 7 years. Money is worth 6.3% compounded semi-annually.

What is the bond rate?

a.

6.3% compounded semi-annually

b.

5.5% payable semi-annually

A $6600 bond bearing interest at 5.5% payable semi-annually is due in 7 years. Money is worth 6.3% compounded semi-annually.

What is the size of the coupon?

a.$363.00

b.$415.80

c.$181.50

d.$207.90

A $6600 bond bearing interest at 5.5% payable semi-annually is due in 7 years. Money is worth 6.3% compounded semi-annually.

What is the number of coupon payments?

a.28

b.6

c.7

d.14

A $6600 bond bearing interest at 5.5% payable semi-annually is due in 7 years. Money is worth 6.3% compounded semi-annually.

If the bond is purchased now, what is the purchase price?

a.$2029.43

b.$6903.36

c.$6304.81

d.$6803.21

A $6600 bond bearing interest at 5.5% payable semi-annually is due in 7 years. Money is worth 6.3% compounded semi-annually.

What is the amount of the premium/discount?

a.Premium = $295.19

b.Discount = $295.19

c.Premium = $137.21

d.Discount = $137.21