1. Gabriele Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and selling for $810. At this price, the bonds yield 10 percent. What must the coupon rate be on the bonds?

2. Chamberlain Co. wants to issue new 13-year bonds for some much-needed expansion projects. The company currently has 12.0 percent coupon bonds on the market that sell for $1,112.67, make semiannual payments, and mature in 13 years. What coupon rate should the company set on its new bonds if it wants them to sell at par? Assume a par value of $1,000.