1) A coupon bond will make 40 annual coupon payments of $5,000 each and will pay a face value of $100,000 at the end of the 40 years. Currently the price of this bond is $100,000. We conclude that the yield to maturity of this bond equals_____________________percent.

2) A coupon bond will make 50 annual coupon payments of $5,000 each and will pay a face value of $100,000 at the end of the fifty years. The yield to maturity of this bond is 5 percent. You buy this bond today. Next year, you collect your coupon and sell the bond for $106,000. What is your one-year holding period return?

It is___________________percent.