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  3. 1. dawson, inc., has a 7.5% coupon bond that matur

1. Dawson, Inc., has a 7.5% coupon bond that matures in 9 years. The bond...

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Finance

1. Dawson, Inc., has a 7.5% coupon bond that matures in 9 years. The bond pays interest semi-annually. What is the market price of a $1,000 face value bond if the yield to maturity is 7.8%?

$1,050.10

$980.86

$1,049.07

$1,045.18

$1,046.55

2. M&M Inc. just issued a bond with a $1,000 face value and a coupon rate of 7.5%. If the bond has a life of 40 years, pays annual coupons, and the yield to maturity is 6.8%, what will the bond sell for?

$1,095.53

$975.18

$1,000.00

$1,087.25

$1,025.32

3. Graham, Inc. bonds bearing a coupon rate of 15%, pay coupons semiannually, have two years remaining to maturity, and are currently priced at $980 per bond. The par / face value is $1,000. What is the yield to maturity?

15.00%

16.57%

16.21%

16.25%

15.99%

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