Q5

A 3.0% coupon bond with 10 years remaining until maturity has a YTM of 5.9%. Assume semi-annual coupon payments. The bond's price should be $___________.

Round your answer to 2 decimal places (example: 987.65).

Margin of error for correct responses: +/- .05

Rounding and Formatting instructions: Do not enter a dollar sign or commas. Do not round any intermediate work, but round your *final* response to 2 decimal places (Example: if your answer is 1234.567, you should enter 1234.57).

Q6

The relevant interest rate (opportunity cost) is 6.6% per year (as an EAR). Find the PV today of the following stream of cash flows: $800 in 1 year, $700 in 2 years, $600 in 3 years, $500 in 4 years, and $400 in 5 years. $____________

Margin of error for correct responses: +/- $.10

Rounding and Formatting instructions: Do not enter a dollar sign or commas. Do not round any intermediate work, but round your *final* response to 2 decimal places (Example: if your answer is 1234.567, you should enter 1234.57).