WHAT IS THE QUICKEST AND EASIEST WAY TO CALCULATE THE FOLLOWING QUESTIONS:1.

1. Which of the following is the bond valuation equation for a bond that pays quarterly coupons and matures in one year?

Correct Answer: b = c x DF(0.25) + c x DF(0.5) + c x DF(0.75) + (c +p) x DF(1)

2.Consider a bond that pays an annual coupon. The coupon rate is 3%. The NAR₁ is 2%. The bond matures in six years. The face value is $100. What is the bond price? CORRECT ANSWER: $105.60