b-4.5.40%, two-year bond b-il. 5.40%, five-year bond b-il. 10 40%, five-year bond Present Value $ 992.84

Please show your work.

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is a. $2,100,000 b. $1,940,000 c. $2,060,000 d. $2,000,000

A1

A​ $10,000 bond quoted at 106 would sell​ for:   A. ​$10,106.   B. ​$106.   C. ​$10,000.   D. ​$10,600.

9,7

Bond A: 10 Year annual bond, price $1010, coupon rate 6%, par $1000 Bond B: 10 year semi-annual bond, price $1010, coupon rate 6%, par $1000 Does Bond A have a higher cost of debt than Bond B?

1. If the quoted price of a corporate bond is “ 105”, that means the bond price is a. $105      b. $1050     c. $1105     d. $995 2. The present value of $1000 to be received in 5 years is — if the discount rate is 12.78% a. $368    b. $494     c. $548    d. $687 3. At what rate must $287.50 be compounded annually for it to grow to $$650.01 in 14 years? a. 6 percent   b. 5 percent    c. 7 percent    d. 8 percent