Question 1

A $5,500 bond had a coupon rate of 4.25% with interest paid semi-annually. Christine purchased this bond when there were 8 years left to maturity and when the market interest rate was 4.50% compounded semi-annually. She held the bond for 3 years, then sold it when the market interest rate was 4.00% compounded semi-annually.

a. What was the purchase price of the bond? $0.00 Round to the nearest cent.

b. What was the selling price of the bond? $0.00 Round to the nearest cent. c. What was Christine's gain or loss on this investment? amount was $ $0.00 .

Question 2

Manvir purchased a $3,000 bond that was paying a coupon rate of 6.40% compounded semi-annually and had 4 more years to mature. The yield at the time of purchase was 5.80% compounded semi-annually.

a. How much did Manvir pay for the bond?

Round to the nearest cent

b. What was the amount of premium or discount on the bond?

(click to select) Premium Discount amount was

Round to the nearest cent