1. Whitford Publishing has 8.5% coupon bonds on the market that have a par value of $1,000 and 10 years left until maturity. Whitford's bonds make semiannual payments and have a nominal YTM equal to 6.96%. What is the bond's current market price?
A. $1,109.63
B. $1,095.46
C. $1,162.54
D. $1,143.12
E. $1,085.64
2. You have just purchased a U.S. Treasury bond for $777.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate will you earn on this bond?
a. 6.47%
b. 5.17%
c. 7.77%
d. 3.87%
e. 2.57%