Answer the following problems using Chapter 16 of the textbook as well as PowerPoint slides.
1) If you were to purchase 5 bonds with a par value of $1000 each with a 7% coupon rate payable annually.  How much interest will you earn after 2 years?  Show your work.
2) Decide which of the following bonds would bring the greater rate of return if kept until maturity.  Both bonds have a $1000 par value and assume they can be sold at face value upon maturity.
  Bond 1 has 10 years to maturity with a coupon rate of 5% and a price of $900.
  Bond 2 has 8 years to maturity with a coupon rate of 6% and a price of $875.
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