1. Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 12% annual coupon payment, and their current price is $1,175. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).

a. What is the yield to maturity? Round your answer to two decimal places. b. What is the yield to call if they are called in 5 years? Round your answer to two decimal places.

2. An 8% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current yield of 8.1957%.

a. What is the bond's YTM? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.) Do not round intermediate calculations. Round your answers to two decimal places.