3. Paccione Corporation has a bond issue outstanding with 8 years to maturity, a coupon rate of 6.5 percent, and a $1,000 par value. The bonds pay coupons annually. Bonds with similar risk and maturity are currently yielding 4 percent.

What is the current price of a bond?

4. Paccione Corporation has a bond issue outstanding with 14 years to maturity, a coupon rate of 6.5 percent, and a $1,000 face value. The bonds pay coupons annually. The bonds sell for $840.

What is the yield to maturity on the bonds?