1.A 35000$, 6.5% bond with quarterly interest coupons redeemable at par in 8 years is purchased to yield at 8.5% compounded quarterly. (i) What is the premium or discount? (ii) What is the purchase price?

2.A company issues 10 bond certificates with a face value of $1000 each that mature in 10 years. Interest on the bonds is 6.5% payable annually. What is the issue price of the bonds if the bonds are sold to yield 5.5% compounded quarterly?