1. Airnet Auto Corporation issued bonds with a coupon rate of 12 percent, pay coupons semiannually, have 7 years remaining to maturity, and are currently priced at $950 per bond. What is the yield to maturity?
a. 12.00%
b. 15.25%
c. 18.15%
d. 13.11%
2. Calculate the current price of a $1,000 par value bond maturing in 10 years with a coupon rate of 12 percent, paid semiannually, that has a YTM of 15 percent?
a. $604
b. $847.08
c. $1,090
d. $1,073