1. The current zero-coupon yield curve for risk-free bonds is as follows:

Maturity (years): 1 2 3 4 5

YTM: 5.04% 5.53% 5.77% 5.97% 6.06%

What is the price per $100 face value of a 2 year, zero-coupon, risk-free bond?

2. Suppose a 10 year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,035.99.

a. What is the bond's yield to maturity ? (Expressed as an APR with semiannual compounding) Round to 2 decimal places

b. If the bond's yield to maturity changes to 9.1% APR, what will be the bond's price? Round to the nearest cent