When a company is issuing bonds, it usually cannot issue them exactly at face (par) value because the coupon rate and the yield demanded by investors do not match exactly. For example, when a company is issuing a ten-year bond, whose coupon rate is 4%, when the yield demanded by investors is 4.0120%, the price of the bond will be......... (two decimal places). This means that the company would be able to raise $............ million (two decimal places) if the total face value of the bonds issued is $50 million.

The value of a bond can be calculated by discounting its cashflow, which consists of regular coupon payments and redemption of....... at maturity, using the desired yield as the discount rate. For example, a bond whose face value is $200,000, coupon rate is 3% and is maturing in 6 years would have a value of $........... (two decimal places, no 100 separator) and be priced at.......... (two decimal places) if the desired yield is 2%. Assume that coupons are paid twice a year.