1. Suppose you have just bought a 16-year, 8% semiannual coupon bond. Your purchasing price of the bond implies that the current YTM is 7%. Assuming you keep this bond till its maturity, the number of coupon payments during the 16 year period is _____ ; the dollar amount of each coupon payment is $ _____ (no decimal places without the $ sign); the dollar amount that you will receive at maturity is $ _____ (no decimal places, without the $ sign).

2. Mary wants to invest her recent bonus in an 12-year, 8 percent coupon bond that pays semiannual coupon payments. The bonds are selling at $1,043.24 today. If she buys this bond and holds it to maturity, what would be her yield-to-maturity?

a) 11.08%

b) 10.49%

c) 5.44%

d) 7.45%

e) 9.68%