How much are the bonds worth

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1. A $1,000 par value bond pays a coupon rate of 8.2 percent. The bond makes semiannual payments, and it matures in four years. If investors require a 10 percent return on this investment, what is the bond's price?

2. Griswold Travel Inc. has issued six-year bonds that pay $30 in interest twice each year. The par value of these bonds is $1,000, and they offer a yield to maturity of 5.5 percent. How much are the bonds worth?

Reference no: EM131329251

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