1. McCue Inc.'s bonds currently sell for $1,102. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,180. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. What is this bond's YTM? What is this bond's YTC?

2. Ryngaert Inc. recently issued noncallable bonds that mature in 15 years. They have a par value of $1,000 and a coupon rate of 10.0%. The bonds pay coupons semi-annually. If the current market interest rate is 8.0%, at what price should the bonds sell?