1. The Lowell Company bond has a bond outstanding that has 10 years remaining to maturity. The bond has a coupon rate of 10.50 percent, paid quarterly. If the yield to maturity is 12.0 percent, what is the market value of this bond?

   		$1,092.18
   		$1,000.00
   		$913.32
   		$915.25

2.

1. Desi Inc. has a bond outstanding with 8 percent coupon, paid semiannually, and 15 years to maturity. The market price of the bond is $1,091.96. If due to changes in market condition the market required rate of return suddenly increases by 2%, what will be the percent change in the market price of the bond?

   		15.88%
   		15.88%
   		62.48%
   		18.88%