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1. A bond is currently priced at 105% of the face value. If it pays a coupon of $50 annually and matures in 5 years,

1. A bond is currently priced at 105% of the face value. If it pays a coupon of $50 annually and matures in 5 years, what is the yield-to-maturity (YTM)? 2. The MB Company issued a $1000. 25 year zero-coupon bond three years ago. The market rate on similar risk bonds todav is 4 5%. Determine the price that an investor would pay today for this bond.

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