1.) Gabriele Enterprises has bonds on the market making annual payments, with 6 years to maturity, a par value of $1,000, and selling for $900. At this price, the bonds yield 8.7 percent. What must the coupon rate be on the bonds?

A. 7.21%

B. 8.70%

C. 6.59%

D. 6.49%

E. 12.98%

2.) West Corp. issued 13-year bonds 2 years ago at a coupon rate of 9.4 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM?

A. 10.67%

B. 4.85%

C. 9.70%

D. 8.73%

E. 11.64%