Question: 1) Consider a 10% coupon bond with a face value of $1,000, a price of $860, and 10 years to maturity. Assume that the bond

1) Consider a 10% coupon bond with a face value of $1,000, a price of $860, and 10 years to maturity. Assume that the bond pays interest on a semiannual basis. Determine the annual yield to maturity.

2) A bond with a face value of $1, 000 and a coupon rate of 10% per annum, payable semiannually, has one year left to maturity. It is currently selling at $900. Determine this bonds YTM.

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