Use the following bond quotes to answer the next two questio

Use the following bond quotes to answer the next two questions.

LAST LAST EST EST

COMPANY (TICKER) COUPON MATURITY PRICE YIELD SPREAD UST $ VOL

Upland Ind (UPL) 6.250 June 30, 2015 97.624 6.609 71 10 38,700

BQI Co (BQI) 7.375 July 1, 2027 101.340 7.249 79 20 76,300

1. The BQI Company bond pays interest semi-annually. You own 12 of these bonds. What is

the amount you will receive as your next interest payment?

2. If you purchase 5 Upland Industries bonds, the cost will be _____ and the annual interest

income will be _____.

ANSWER BOTH and show me how you got to the answer. thanks

1. Interest Payment = Coupon Rate x Face Value

= 12 x [(0.07375 x $1,000)/2] = 12 x $36.875 = $442.50

2. Cost = 5 x (0.97624 x $1,000)

= 5 x $976.24 = $4,881.20

Annual Interest Income = 5 x (0.0625 x $1,000) = 5 x $62.5 = $312.50