1) A 10% coupon bond with annual payments and 10 years to maturity is callable in 3 years at a call price of $1100. The bond is selling today for $975. The face value of the bond is $1000. What is the yield to call?

2) 10 points QUESTION 10 " 3-years ago, you purchased a newly-issued TIPS bond that has a 6% coupon rate, 5 years to maturity, and a par value of $1000. The yearly average inflation rate since purchase has been 4.2%. What is the current face value of the bond?"