JIMMY WANTS TO COMPUTE THE PRESENT VALUE OF A SIX YEAR SEMI-ANNUAL...

27. Jimmy wants to compute the present value of a six year semi-annual 8% coupon bond that has a 9% yield to maturity. Which one of the following is correct? A) The number of interest payments is twelve. B) The present value is assumed to be $1,000. C) The amount of each interest payment is $80. D) The bond is selling at a premium. E) Both A & C are correct. Solution: A