Question 11

What is the price of this bond?

Question 11 options:

$1,233,016

$2,150,000

$1,851,456

$1,903,386

Question 12

Use the following information to answer Question 12 through Question 14.

Assume a bond is issued with the following features:

Face Value: $950,000

Coupon Rate: 0%

Interest Rate: 9%

Life: 6 years

Compound Period: Semiannual

______________________

Is this bond issued at par value, a discount, or a premium?

Question 12 options:

A Premium

A Discount

Par Value

Question 13

What is the coupon payment related to this bond, and how often is it paid?

Question 13 options:

$171,000 paid twice a year.

$95,000 paid once a year.

$85,500 paid once a year.

$42,750 paid twice a year.

There is no coupon payment associated with this bond.

Question 14

What is the price of this bond?

Question 14 options:

$560,177

$660,188

$950,000

$717,854