1- The Sisyphean Company has a bond outstanding with a face value of $ 1,000 that reaches maturity in 5 years. The bond certificate indicates that the stated coupon rate for this bond is 8.7% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 11.9%, then the price that this bond trades for will be closest to:

2- A $1,000 bond with a coupon rate of 6.8% paid semiannually has ten years to maturity and a yield to maturity of 6.5%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond?

A. fall by $ 73.4

B. fall by $ 61.16

C. rise by $ 61.16

D. rise by $ 85.63