Response to the following questions:
1. A bond is currently selling in the market for $1170.68. It has a coupon of 12% and a 20-year maturity. Using annual compounding, calculate the promised yield on this bond.
2. A bond is currently selling in the market for $1098.62. It has a coupon of 9% and a 20-year maturity. Using annual compounding, calculate the promised yield on this bond.