1. Your company wants to raise $9.5million by issuing 15-year zero-coupon bonds. If the yield to maturity on the bonds will be 35%(annual compounded APR), what total face value amount of bonds must you issue?

2. Suppose a ten-year,$1,000 bond with an 8.5%coupon rate and semiannual coupons is trading for$1,035.21.

a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?

b. If the bond's yield to maturity changes to 9.9%APR, what will be the bond's price?