<1> Roadside Markets has a 6.75 percent coupon bond outstanding that matures in 10.5 years. The bond pays interest semi-annually. What is the market price per bond if the face value is 1,000 and the yield to maturity is 6.69 percent?

a. 1,007.52

b. 999.80

c. 1,004.47

d. 999.85

e. 1,001.42

<2> If the discount rate on the bond is 8% and the expected payment next year is 952.50, what is the price of the bond?

a. 952.50

b. 1,399.51

c. 881.94

d. 1000.00