PART A:

A year ago, Jasper Inc. sold 20-year bonds at par with a coupon rate of 4.5 percent and semiannual payments. The face value of each bond is $1,000 and the yield to maturity is now 5.6 percent. What is the current value of each bond?

A. $923.09

B. $880.92

C. $872.35

D. $905.92

E. $868.66

PART B:

North & South RR bonds bear a coupon rate of 5.5 percent, payable annually. The bonds mature in 6.5 years, sell at par, and have a $1,000 face value. What is the yield to maturity?

A. 5.59%

B. 5.86%

C. 5.50%

D. 5.42%

E. 5.71%