USE EXCEL, MUST BE ONE OF THE OPTION CHOICES Review the Bond Table below; all bonds have semi$-$annual payments.

Security Coupon Rate Face Value Price

$1-$yr Treasury $0\mathrm{.}00\%$ $$1,000$ $ $965\mathrm{.}90$

$5-$yr Treasury $4\mathrm{.}50\%$ $$1,000$ $ $991\mathrm{.}18$

$10-$yr Treasury $5\mathrm{.}00\%$ $$1,000$ $ $976\mathrm{.}94$

$5-$yr Corporate $4\mathrm{.}80\%$ $$1,000$ $ $912\mathrm{.}46$

$($rated A$)$

$10-$year Corporate $8\mathrm{.}40\%$ $$1,000$ $$1,044\mathrm{.}66$

$($rated BBB$)$

What price should you pay for a Corporate Bond with semi$-$annual payments, a $5-$year maturity, a Default Rating of BBB$,$ a Face Value of $$1,000$ and a coupon rate of $7\mathrm{.}20\%?$

Multiple Choice

$$1,002\mathrm{.}07$

$$997\mathrm{.}93$

$$1,004\mathrm{.}32$

$$996\mathrm{.}34$What price should you pay for a Corporate Bond with semi$-$annual payments, a $5-$year maturity, a Default Rating of BBB$,$ a Face Value of $$1,000$ and a coupon rate of $7\mathrm{.}20\%?$

Multiple Choice

$$1,002\mathrm{.}07$

$$997\mathrm{.}93$

$$1,004\mathrm{.}32$

$$996\mathrm{.}34$