A [z]-year coupon bond has a face value of $1000.  The coupon rate is [x]%, and coupon payments are made semiannually.  If the yield is [y]% compounded semiannually, what is the price of the bond. Answer should be to two decimal places and based on the $1000 face.

Two years ago, Bar M Bonds were issued at par with a [z] year maturity.  The face value is $1000.  The coupon rate is [x]% and coupons are paid semiannually.  If investors now demand a yield of [y]% compound semiannually, find the current price of the bond. Answer should be to 2 decimal places and based on $1000 face.

With a callable bond, the issuer can buy back the bonds before maturity

The _____ is the additional return for the possibility that the security is hard to trade (illiquid)

Investors will demand a liquidity premium to cover the possibility that the security cannot be quickly and easily sold for cash

If the bond price is less than par (1000), the bond is

Ryder has two 20-year bonds.  If the bonds have different _____, then their yields could be different

Formal name for the legal contract between the bondholder and the bond issuer

Assets used to secure a loan are known as coupons.

A bond is a loan from investors to the firm.