1. A 12-year bond has a 9 percent annual coupon, a yield to maturity of 2.4 percent, and a face value of $1,000. What is the price of the bond?

2. The current price of a bond is 800, next year the price will be 880. The bond pays a $20 annual coupon. What is the current yield, capital gains yield and total return?

a. 10%, 2.5%, and 12.5%

b. 10%, 2.27%, and 12.27%

c. 2.5%, 2.27%, and 12%

d. 2.5%, 10%, and 12.5%

e. none of the above