The Putnam Group wants to issue $50 Million of new 20-year bonds. The bonds have a coupon of 4.25%, paid semi-annually. The YTM on similar
Putnam bonds is currently 4.75%. What is the total amount of money raised by Putnam from the bond issue?
Select one:
a. $50,000,000 x
b. $49,665,331
c. $48,362,905
d. $46,795,053
e. $46,554,556
Five years after buying the bond issued by The Putnam Group in Question #6, you need to sell. The current YTM at the sale date is 4.0%. What is
your sale price per $1,000 bond?
Select one:
a. $995 x
b. $1,000
c. $1,009
d. $1,028
e. $1,084