1- Oak Bay Software has 11.0% coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 108.6% of par.

What is the YTM? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

YTM %

What is the effective annual yield? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

2-

The Metchosin Corporation has two different bonds currently outstanding. Bond M has a face value of $40,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $1,500 every six months over the subsequent eight years, and finally pays $1,800 every six months over the last six years. Bond N also has a face value of $40,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 12% compounded semiannually, what is the current price of bond M and bond N? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

	Current Price
Bond M	$
Bond N	$

Effective annual yield %