1.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 9%,

Maturity = 7 years, Yearly coupons

The market interest rate is 4.02%

If interest rates remain at 4.02%, what will the price of bond A be in year 1?

2.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 4%,

Maturity = 8 years, Yearly coupons

The market interest rate is 5.80%

What is the current yield for bond A from today to year 1?

Calculate your answer to 2 decimal places (e.g., 5.23)