Question: 1. Consider a coupon bond that has a par value of $1,000 and a coupon rate of 6%. The bond is currently selling for $1,009.23

1. Consider a coupon bond that has a par value of $1,000 and a coupon rate of 6%. The bond is currently selling for $1,009.23 and has 2 years to maturity. What is the bond's yield to maturity (YTM)?

2. What is the price of a perpetuity that has a coupon of $45 per year and a yield to maturity of 1%?

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