1) Serengeti Corp. has five-year bonds outstanding that pay a coupon of 8.8 percent. a) If these bonds are priced at $1,064.86, what is the yield to maturity on these bonds? Assume semiannual coupon payments. To answer the question, write the bond pricing equation first, and then use Solver to find the YTM. b) If the YTM is 7.23%, What is the effective annual yield? On Excel

2) Nanotech, Inc., has a bond issue maturing in seven years that is paying a coupon rate of 9.5 percent (semiannual payments) , and the face value of the bond is $1,000. The company wants to retire a portion of the issue by buying the securities in the open market. If it can refinance at 8 percent, how much will Nanotech pay to buy back its current outstanding bonds? On Excel