1.There is a corporate bond in the market that is selling for $1,245.84 each, stated rate of interest of 7.81% with a maturity of 7 years. What is the yield-to-maturity (YTM) of this bond?

a. 1.89%

b. 0.94%

c. 7.56%

d. 3.78%

2. You are eyeing an investment in a corporate bond which has a YTM of 6.00%, and a stated rate of interest of 15.00% with a maturity of 30 years. What is the price of this bond?

a. $2,245.40

b. $4,321.07

c. $2,821.64

d. $1,206.47