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1. Three years ago you purchased a 12% coupon bond that pays semiannual coupon payments for $979. What would be your bond equivalent yield if

1. Three years ago you purchased a 12% coupon bond that pays semiannual coupon payments for $979. What would be your bond equivalent yield if you sold the bond for current market price of $1,053?

2. You notice in the WSJ a bond that is currently selling in the market for $1,063 with a coupon of 11% and a(n) 19-year maturity. Using annual compounding, calculate the promised yield on this bond.

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