Ashes Divide Corporation has bonds on the market with 13 years to maturity, a YTM of 7.4 percent, and a current price of $1,186.50. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round your intermediate calculations.)

rev: 09_18_2012

Multiple Choice

• 9.66%

• 19.36%

• 9.76%

• 16.32%

• 8.14%

Grohl Co. issued 17-year bonds a year ago at a coupon rate of 12 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price?

rev: 09_18_2012

Multiple Choice

• $1,084.52

• $1,074.52

• $1,059.32

• $574.82

• $1,823.73