The next 3 questions refer to the problem below:

A corporate bond with a face value of $1,000 matures in 4 years and has an annual rate of return of 6.25%. The current annual market interest rate is 7%. Interest is paid semi - annually.

1)What is the present value of only the coupon payments?

Group of answer choices

$31.50

$50.00

$62.50

$214.81

$312.50

$1,000

2)What is the present value of only the bond's face value payable at maturity?

Group of answer choices

0

$62.50

$312.50

$145.40

$759.41

$1,000

3)What is the total bond value (same as the current price of the bond)?

Group of answer choices

$500

$750

$974.22

$1,000

Greater than $1,000

Cannot be determined