Question 1

a.

A bond has a $1,000 par value, 35 years to maturity, a 6% coupon, and a 5.85% YTM. The bond pays coupons semiannually. The bond is callable 8 years from today with a call price of $1,020. What is this bond's flat price? Enter the price as a positive value.

b.

A bond that pays interest semiannually is selling for 100% of its $1,000 par value. The bond has a 4% coupon rate and paid a coupon 1 month ago. What is this bond's invoice price?