1. LIAS Inc. bonds have a face value of $1,000, mature in 10 years, pay interest semiannually, and have a coupon rate of 9.0 percent. If the market rate of return is 6.0 percent, what is the current price of this bond?
$721
$1,056
$1,223
$955
$828
2. The purchase price on a piece of land is $650. The marginal tax rate is 8% and the nominal terminal value is $967. There is an inflation rate of 4% and a growth rate of 3%. What is the nominal after-tax terminal value?
$954.32
$941.64
$957.49
None of the answers are correct