1. A $5,000 bond, redeemable at 105 on Sep. 1, 2014, has semiannual coupons at j2 = 2r. It is purchased for $5,203.69 on March 1, 1993, to yield j2 = 12.5%. Find r.

2. A bond with $80 annual coupons is purchased at a discount to yield j2 = 7.5%. The write-up for the first year is $22. What was the purchase price?