Chadron Motors needs to raise $2.8 million for expansion. The firm wants to raise this money by selling 20-year, zero-coupon bonds with a par value of $1,000. The market yield on similar bonds is 7.19 percent. How many bonds must the company sell to raise the money it needs? Assume semiannual compounding.

• A. 10,315 bonds
• B. 11,500 bonds
• C. 10,044 bonds
• D. 2,800 bonds
• E. 9,450 bonds

A bond has a $1,000 face value, a coupon rate of 8 percent, 7 years to maturity, semiannual interest payments, and a YTM of 8.2 percent. If interest rates suddenly rise by 2 percent, what will be the percentage change in the bond price?

• A. - 9.56 percent
• B. - 10.02 percent
• C. - 10.16 percent
• D. - 10.67 percent
• E. - 9.87 percent