1. A ten-year bond pays 7% interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity?
A. 9.33%
B. 3.46%
C. 5.34%
D. 4.52%
2. A 15-year zero-coupon bond was issued with a $1000 par value to yield 8%. What is the approximate market value of the bond?
A. $597
B. $315
C. $275
D. $482