Assume that Microsoft bonds have just left the printer and have a stated coupon of $100 (a coupon rate of 10%) and a yield-to-maturity of 15%. The bonds mature in three years and the next coupon is due in one year. What is the fair price for the bond today?

A) $956.52

B) $885.84

C) $832.39

D) $1,000

E) $918.71

Consider a 6-year corporate bond issued by Vandelay Industries. The bond has a face value of $1,000, and has an annual coupon rate of 6.8%. The yield to maturity of the bond is 8.2%. What is the fair price for the bond today?

A) $961.29

B) $935.67

C) $1000.92

D) $1000.00

E) $623.21

The bonds of Vandalay Inc. pay annual coupons at the rate of 7%. They mature in 15 years with a face value of $1,000. What is their price if their yield is 6%?

A) $731.70

B) $908.92

C) $1,000

D) $1,097.12

E) $1,279.83