1. You are eyeing an investment in a corporate bond which has a YTM of 7.00%, and a stated rate of interest of 9.00% with a maturity of 3 years. What is the price of this bond?

a. $1,052.49 b. $1,293.07 c. $934.39 d. $1,053.29

2. You are eyeing an investment in Treasury Notes for a full lot (i.e. PAR=$100,000), and find a note with a maturity of 1 years. This particular Treasury has a YTM of 3.51%, and a stated rate of interest of 4.10% with a maturity of 1 years. The market price of this treasury is closest to?

a. $100,574.82 b. $100,569.99 c. $104,569.36 d. $98,589.51