Question 1

A $8,500 bond that carries a 3.50% coupon rate payable semi-annually is purchased 5 years before maturity when the yield rate was 4.50% compounded semi-annually.

a. Calculate the purchase price of the bond. $ $0.00 Round to the nearest cent

b. What is the amount of discount or premium on the bond? amount is $0.00 Round to the nearest cent

Question 2

A bond that has a face value of $2,500 and coupon rate of 4.80% payable semi-annually was redeemable on July 1, 2021. Calculate the purchase price of the bond on February 10, 2015 when the yield was 5.05% compounded semi-annually.

Round to the nearest cent