Twelve years ago, The Broadside Company issued bonds that pay annual coupons, have a face value of $1,000.00, have a coupon rate
of 8.92%, and were scheduled to mature 20 years after being issued. One year ago, you bought one of those bonds. The bond just
paid a coupon and is currently priced at $1,057.31. If the percentage return on your bond was 5.40% over the past year (from 1 year
ago to today), what was the price of the bond 1 year ago?
$1,087.77 (plus or minus $2)
$1,205.25 (plus or minus $2)
$918.51 (plus or minus $2)
$1,000.00 (plus or minus $2)
none of the answers are within $2 of the correct answer
QUESTION 2
Twelve years ago, The Broadside Company issued bonds that pay annual coupons, have a face value of $1,000.00, have a coupon rat
of 8.85%, and were scheduled to mature 17 years after being issued. One year ago, you bought one of those bonds. The bond just
paid a coupon and is currently priced at $1,157.14. If the percentage return on your bond was 5.22% over the past year (from 1 year
ago to today), what was the price of the bond 1 year ago?
$1,183.84 (plus or minus $2)
$1,307.44 (plus or minus $2)
$1,015.62 (plus or minus $2)
$1,000.00 (plus or minus $2)
none of the answers are within $2 of the correct answer