1. Review how time to maturity and the coupon rate affect interest rate risk (200 words and no Plagiarism)
2. A 5.45 percent coupon bond with 16 years left to maturity can be called in six years. The call premium is one year of coupon payments. It is offered for sale at $1,085.90. What is the yield to call of the bond? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.)