A company has 15-year bonds outstanding that pay an 3.2 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 8.3 percent p.a.. What should the company's bonds be priced at today? Assume annual coupon payments and a face value of $1000. (Rounded to the nearest dollar)

a.$571 

b.$437 

c.$3307 

d.$1600

Jack invested in a government bond that promised an annual yield to maturity of 5.2 percent. The bond pays coupons twice a year. What is the effective annual yield (EAY) on this investment? (answer as a percentage rounded to two decimal places without % sign. eg 2.889% is 2.89)

Answer rating: 100% (QA)

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