1. Use the following corporate bond quote information to answer the questions that follow. Since this is a corporate bond, assume the company makes semi-annual coupon payments and also assume the bond matures on todays date (May. 28) in its maturity year and the par value is $1,000. The price is a dollar term.

Company Coupon(%) Maturity Price($) Yield

XYZ Inc. 7.000 May 28, 2025 976.67

a. What is the bonds yield to maturity?

b. If your required return is 9% APR, would you buy this bond today? Show work to prove why or why not.