Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%.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.$891.00

b.$913.27

c.$936.10

d.$959.51

e.$983.49

Wachowicz Corporation issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago.Today, the market interest rate on these bonds is 5.5%.What is the current price of the bonds, given that they now have 14 years to maturity?

a.$1,077.01

b.$1,104.62

c.$1,132.95

d.$1,162.00

e.$1,191.79