Question: 1A- What is the most we should pay for a bond with a par value of $1000, coupon rate of 5.8% paid semi-annually, and a

1A- What is the most we should pay for a bond with a par value of $1000, coupon rate of 5.8% paid semi-annually, and a remaining life of 7 years? The bond is rated BBB, with a yield to maturity of 5.8%. (Round your answer to the nearest penny.)

1B- Compute the yield to maturity for a zero coupon bond with a maturity of 9 years and a face value of $1000. The bond is selling for $646.21. (Assume annual discounting.) (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34)

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