1. A zero-coupon bond with face value $1,000 and maturity of six years sells for $748.22. What is its yield to maturity? What will the yield to maturity be if the price falls to $732? 2. Two bonds have identical times to maturity and coupon rates. One is callable at 115, the other at 110. Which should have the higher yield to maturity? a.) The bond callable at 110 should have the higher yield to maturity. b.) The bond callable at 115 should have the higher yield to maturity, A bond with an annual coupon rate of 5.6% sells for $955. What is the bond's current yield? Chapter 10