1.A $1000, 8.5% bond with interest payable annually is purchased six years before maturity to yield 10.5% compounded annually. Compute the premium or discount and the purchase price, and construct the appropriate bond schedule.

2.A $10 000 bond with 5% interest payable quarterly, redeemable at par on November 15, 2030, was bought on July 2, 2014, to yield 9% compounded quarterly. If the bond sells at 92.75 on September 10, 2020, what would the gain or loss on the sale be?