1. Madsen Motors bonds have 19 years remaining to maturity. Interest is paid annually, they have a 1000 par value, the coupon interest is 6%, and the yield to maturity is 9%. What is the bonds current market price? Round your answer to the nearest cent.

2. A bond has a $1000 par value, 20 years to maturity, and a 5% annual coupon and sells for $860.

a. What is the yield to maturity? Round your answer to two decimal places.

b. Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.