Two part Question

Millennium Corp. is preparing a bond offering with a 7 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 20 years and will be sold at par. Given this, which one of the following statements is correct?

	The bonds will initially sell for $1,070 each
	The bonds will sell at a premium if the market rate is 7.5 percent
	The bonds will become discount bonds if the market rate of interest declines
	The bonds will pay 40 interest payments of $35 each

The bonds issued by Millenium Corp. bear an 4 percent coupon, payable semiannually. The bonds mature in 10 years and have a $1,000 face value. Currently, the bonds sell for $911. What is the yield to maturity?

	2.57 percent
	7.11 percent
	8.08 percent
	3.56 percent
	5.15 percent