1. A bond with a face value of $7500 pays interest of 10% per year. This bond will be redeemed at par value at the end of its 15-year life, and the first interest payment is due one year from now. If the price of the bond is $6000, what is the annual yield the buyer can receive ?

2. A bond with a face value of $8000 pays interest of 10% per year. This bond will be redeemed at par value at the end of its 15-year life, and the first interest payment is due one year from now. If you want a 12% return rate, what is the highest price that you'd be willing to pay for the bond?