1. A friend wants to borrow money from you. He states that he will pay you $2,700 every 6 months for 9 years with the first payment exactly 5 years and six months from today. The interest rate is 7.3 percent compounded semiannually. What is the value of the payments today?
$23,193.74
$24,729.49
$25,395.75
$23,711.08
$24,576.53
2. You purchase a bond with an invoice price of $1,077. The bond has a coupon rate of 5.9 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. The par value is $1,000. What is the clean price of the bond?
$1,067.17
$1,047.50
$1,086.83
$1,106.50
$1,057.33