1. A $1,000 par value bond has a current price of $799.30 and a maturity value of $1,000 and matures in 6

years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond's annual coupon rate?

The bond's annual coupon rate is

2. You notice in the WSJ a bond that is currently selling in the market for $1,063 with a coupon of 11%

and a(n) 19-year maturity. Using annual compounding, calculate the promised yield on this bond. The bond's promised yield is %.

(Round to two decimal places.)