Jemma has a $7,400.00 bond, bearing interest at 5.3% payable semi-annually is due in 5 years. Money is worth 6.5% compounded semi-annually.

A) What is the bond rate?

a. 5.3% payable semi-annually

b. 6.5% compounded semi-annually

B) What is the size of the coupon?

a. $240.50

b. $481.00

c. $196.10

d. $392.20

C) What is the number of coupon payments?

a. 20

b. 5

c. 5

d. 10

D) If the bond is purchased now, what is the purchase price?

a. $7785.60

b. $7636.91

c. $1651.63

d. $7026.05

E) What is the amount of the premium/discount?

a. Premium = $162.91

b. Premium = $373.95

c. Discount = $373.95

d. Discount = $162.91