1.Wellspring Firm is planning a 19-year bond issue. The $1,000 par value bonds will pay a semi-annual coupon of $43.85. The investment bankers that you have retained for the bond issue estimate that the bonds will sell for $1,024.28. What is the rate of interest that your firm is paying on the bonds?

2.What is the coupon rate for a $1,000 par value band with semi-annual coupon, 23 years to maturity that sells for $1,141.93 if investors require a return of 9.42% on the bond?