2. Please answer the questions below based on a corporate bond with the following characteristics: Issuer: Environmental Technologies Corporation Standard and Poor rating: AA Par value: $100,000 Coupon rate: 7% per annum Coupon payment: Paid semiannually Maturity date: Ten years December 31, 2026 A) What is the dollar amount of the coupon payment every six months? _______________ B) Is the coupon payment a fixed or variable rate? ____________ C) Is this bond investment grade? (Yes or No) ________________ D) What amount is Environmental Technologies Corporation promising to pay investors at maturity? ______________. E) If you invested in this bond, are you permitted to sell it before maturity? (Yes or No) _____________.

F) Environmental Technologies Corporations bond is not callable. If Conservation Services Corporation sold a bond that was like the Environmental Technologies Corporation bond in every respect, except that the Conservation Services Corporation bond had a call provision, which bond would need to offer investors a higher yield? _____________________________________________________________