ACE Inc. offers 7 percent coupon bonds with semiannual payments and a yield to maturity of 8 percent. The bonds mature in 25 years. What is the market price per bond if the face value is $1,000?

A. 892.59

B. 698.86

C. 816.54

D. 355.23

E. 971.47

A 16-year, 4.5 percent coupon bond pays interest annually. The bond has a face value of $1. What is the percentage change in the price of this bond if the market yield to maturity drops to 5.2 percent from the current rate of 5.5 percent?

A. 3.33%

B. 3.76%

C. -4.82%

D. -3.33%

E. 5.64%