Margaret Wants to Compute the Present Value of a Six

Multiple Choice

Margaret 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) The current price of the bond will be greater than the par value.