Assume that you are considering the purchase of a 14-year bond with an annual coupon rate of 2.0%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

A. 497.10 B. 546.81 C. 1000 D. 364.54

OBrien Ltd.s outstanding bonds have a $1,000 par value, and they mature in 16 years. Their nominal yield to maturity is 6.50%, they pay interest semiannually, and they sell at a price of $880. What is the bonds nominal (annual) coupon interest rate?

	A.	6.50%
	B.	5.28%
	C.	2.64%
	D.	5.00%