1. Kiss the Sky Enterprises has bonds on the market making annual payments, with 18 years to maturity, and selling for $970. At this price, the bonds yield 8.1 percent. What must the coupon rate be on the bonds?
a. 7.78%
b. 15.56%
c. 7.88%
d. 8.02%
e. 8.10%
2. Staind, Inc., has 8 percent coupon bonds on the market that have 15 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 9 percent, what is the current bond price
a. $1,089.59
b. $965.36
c. $919.39
d. $873.42
e. $1,030.00