QUESTION $4$

Your business is offered a contract that pays $$288874$ every quarter for three years. What is the contract worth to you today if the discount rate is $8\mathrm{.}04\%$ per quarter.

QUESTION $5$

Suppose a vanilla corporate bond pays a $7\%$ coupon. If the bond is at par, what is its market yield?

$7\%$

$3\mathrm{.}5\%$

greater than $7\%$

greater than $3\mathrm{.}5\%$ but less than $7\%$

less than $3\mathrm{.}5\%$

cannot be determined

QUESTION $6$

Suppose GE plans to issue a note that matures in $3$ years and has a $3\mathrm{.}43\%$ coupon rate. If the market yield is $4\mathrm{.}68\%,$ what is the market price?