1. Noncallable bonds that mature in 10 years were recently issued by Hoblit Inc. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?
A. $829.21
B. $850.47
C. $872.28
D. $894.65
2. Jim has $1,000.00 income from his job and $200.00 stock dividend income this month. This month Jim has rent and utilities of $300.00, and he spent $300.00 on groceries and $200.00 on clothing. What is his cash inflow this month?
$500.00
$1,200.00
$400.00
$600.00