1. Estee Lauder Cos. issues a 3 percent coupon bond with 30 years maturity and $1,000 face (par) value. If the yield to maturity of this bond is 12 percent, find the bond's price.
a. none of the answers is correct
b. $242.02
c. $161.35
d. $275.03
e. $220.02
2. Archer-Daniels-Midland Co issues a 3 percent coupon bond with 14 years maturity, $1,000 face (par) value, and semi-annual payments. If the yield to maturity of this bond is 15 percent, find the bond's price.
a. $179.29
b. $244.48
c. $305.60
d. $268.93
e. none of the answers is correct