Today, you bought one corporate semiannual bond with $1,000 par value, 8% coupon rate, 8 years left to maturity. The yield to maturity (YTM) of the bond is 10% today. Suppose the issuing firm does not default on the bond in the next 8 years.

Question 18

What is the price of the bond today?

$875.38

$891.62

$1,000.00

$1,116.52

Question 19

How much interest (not just coupon) in total should the issuing firm pay you in the next five years?

$400.00

$435.90

$447.40

$457.62

Question 20

How much will the issuing firm owe you at the end of the fifth year?

$922.78

$949.24

$1,000.00

$1,052.42