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1. What influences this, "Bonds are priced depending on the supply and demand for that particular bond."

2. If a 10 year bond that pays interest annually has a par value of $1,000, coupon rate of 9.125%, rate of return of 8%, and a bond price of $1,080.31. If the PV Coupon is $651.43, what is the PV of the principle?

3. A bond makes two $45 coupon payments each year. Given that the bond’s par value is $1,000 and its price is $1,050, calculate the bond’s coupon rate.

Financial Management, Finance

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