1.What is the yield to maturity on the following bonds; all have a maturity of 5 years, a face value of 2000, and a coupon rate of 4 percent (paid semiannually). The bond's current prices are:

a. $1,980

b. $ 2,100

2.What is the price of the bonds if; all have a maturity of 5 years, a face value of 1000, and a coupon rate of 4 percent (paid semiannually). Yields to maturity are:

a. 4.2%

b.3.7%

Hint: Price of the bond is the same as the present value formula.