Question 6 Walmart has $1,000 par value bonds outstanding that matures in 19 years and has a 5% coupon rate. Interest is paid twice per year. If investors require a rate of return of 6% on these bonds, what is the value of a bond?

A. $1,120

B. $2,245

C. $1,322

D. $887

E. $1,196

Question 7 Dennys has a new bond issue that has a $1000 par value, a 6.55% coupon rate and semiannual interest payments. The bond will mature in 20 years. If the bond's price is quoted at 78.25, what is the bond's yield to maturity?

A. 83.7%

B. 5.03%

C. 6.00%

D. 8.46%

E. 8.89%