4. Consider two bonds, each with a $1,000 face value and each with three years remaining to maturity.

a. The first bond is a pure-discount bond that currently sells for $816.30. What is its yield-to-maturity?

b. The second bond currently sells for $949.37 and makes annual coupon payments at a rate of 7% (that is, it pays $70 in interest each year). The first interest payment is due one year from today. What is this bond's yield-tomaturity?