1. You find a zero coupon bond with a par value of $5,000 and 19 years to maturity.

If the yield to maturity on this bond is 5.1 percent, what is the price of the bond? Assume semiannual compounding periods. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

2.

You buy a zero coupon bond at the beginning of the year that has a face value of $1,000, a YTM of 10 percent, and 22 years to maturity. You hold the bond for the entire year. Assume semiannual compounding.

How much interest income will you have to declare on your tax return? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)