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Q1: Cranston Industries just issued $1,000 par 30-year bonds. The bonds sold for $1,107.20 and pay interest semi-annually. Investors require a rate of 7.75% on

Q1: Cranston Industries just issued $1,000 par 30-year bonds. The bonds sold for $1,107.20 and pay interest semi-annually. Investors require a rate of 7.75% on the bonds. What is the bonds' coupon rate?

Q2:

Suppose today you purchase a 20-year bond with annual coupon rate of 9%. Its yield to maturity is 10%. For a face value of $1000, the bond will initially trade for

If the bond

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