1. Ahmad Corp. just issued ten-year bonds that make annual coupon payments of $50. suppose you purchased one of these bonds at par value ($1,000) when it was issued. Right after your purchase, market interest rates jumped, and the YTM (interest rate) on your bond rose to six percent. What is the new price of you bond?

2. Assume a bond matures for $1000 six years from today and has a 7% coupon rate with semiannual coupons. What is the value of the bond today if the yield to maturity on the bond equals 8.5%?