1. Sweeney Sailboats’ bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10 percent; and the yield to maturity is 12 percent. What is the bond’s current market price?
2. A bond has a $1,000 par value, 15 years to maturity, a 12 percent annual coupon, and sells for $875. What is the bond’s yield to maturity (YTM)?