1. Merton Enterprises has bonds on the market making annual payments, with 13 years to maturity, and selling for $905. At this price, the bonds yield 8.5 percent. What must the coupon rate be on Mertons bonds?

2) Mullineaux Co. issued 10-year bonds one year ago at a coupon rate of 7.50 percent. The bonds make semiannual payments. If the YTM on these bonds is 8.6 percent, what is the current bond price?