1. A bond that has a sinking fund provision
may repurchase a certain percent of bonds through a redemption process based on a numbering or lottery type system.
may repurchase a certain percent of bonds in the open market.
is usually considered safer than a bond issue that does not have a sinking fund provision.
All of the above are correct.
2. A coupon bond that pays interest annually has a par value of $1,000, matures in 8 years, and has a yield to maturity of 6%. If the coupon rate is 7%, then value of the bond today will be __________.