1. Mine-all-mine Corp. issues a 5-year bond with a 3% annual coupon. The par value of the bond is $1,000. Determine the current value of the bond if present market conditions justify a 3% required rate of return (market yield).
2. Mine-all-mine Corp. has a bond issue outstanding with an annual coupon of 3% and 4 years remaining until maturity. The par value of the bond is $1000. Determine the current value of the bond if present market conditions justify a 5% required rate of return.