1. Speedy Corporation issued $1,000,000 callable bonds paying 8% interest and maturing in ten years. The bonds were called two years after they were issued. New bonds were sold at 6%. Was this a good decision to call the bonds? Show all computations and express your point of view.

2. A $1,000 government bond was purchased at 90. The bond has a 7% interest and matures in ten years. Find the current yield of the bond. Explain your answer. Answer to the discussion of at least two colleagues with analytical contributions. Answers expressing just agreements with another colleague's discussion will not receive credit if it lacks valid reasoning.