1. The Nickelodeon Manufacturing Corp. has a series of $1,000 par value bonds outstanding. Each bond pays interest (coupon payment) semi-annually and carries an annual coupon rate of 6%. Some bonds have a maturity date of 4 years and some have a maturity date of 10 years. If the YTM is 10%, what is the current price of:

Round your answers to two decimal points:

1. The bonds with 4 year maturity
2. The bonds with 10 year maturity
3. Are the bonds selling at a discount, at par, or at a premium? Briefly explain.
4. Which of the bonds has a higher selling price under the current market conditions? Briefly explain.

4 year bond 10 year bond

N = N =

I = I =

PV = PV =

PMT = PMT =

FV = FV =

P/Y = P/Y =