18.

Cold Boxes Ltd. has 100 bonds outstanding (maturity value = $1,000). The nominal required rate of return on these bonds is currently 10 percent (Kd), and interest is paid semiannually. The bonds mature in 5 years, and their current market value is $768 per bond. What is the annual coupon interest rate?

Question 18 options:

8%

6%

4%

2%

0%

17.

A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The equilibrium price of the bond today will be __________ if the coupon rate is 8%.

Question 17 options:

	$922.78
	$924.16
	$1,075.80
	$1,077.20
	none of the above