A bond has a yield to maturity of 8.7 percent, a coupon of 7.5 percent paid semiannually, a $1,000 face value, and a maturity date 21 years from today. What is the current yield?

• A. 7.91 percent
• B. 9.05 percent
• C. 8.47 percent
• D. 9.38 percent
• E. 9.46 percent

Chadron Motors wants to issue new 10-year, $1,000 face value bonds at par. The company currently has 6.35 percent coupon bonds on the market that sell for $997.81, make semiannual interest payments, and mature in 10 years. What coupon rate should the company set on its new bonds?

• A. 6.47 percent
• B. 6.38 percent
• C. 6.50 percent
• D. 6.37 percent
• E. 6.58 percent

You purchase a bond with an invoice price of $1,104.68. The bond has a coupon rate of 5.5 percent, semiannual coupons, and there are two months to the next coupon date. What is the clean price of the bond?

• A. $1,057.50
• B. $1,050.20
• C. $998.50
• D. $1,090.15
• E. $1,086.35