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1) What is the coupon rate of a nine year, $10,000 bond with semiannual coupons and...

1) What is the coupon rate of a nine year, $10,000 bond with semiannual coupons and a price of $8,666.52, if it has a yield to maturity of 7%?

2) A $1,000 bond with a coupon rate of6.1 % paid semiannually has nine years to maturity and a yield to maturity of 7.5 %. If interest rates rise and the yield to maturity increases to 7.8 %, what will happen to the price of the bond?

A) rise by $18.04

B. fall by $18.04

C. fall by $21.65

D. The price of the bond will not change.

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