6. Emacs Co. issued 16-year, $1,000 face value bonds one year ago at a coupon rate of 5.7 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price?

7. You buy a TIPS at issue at par for $1,000. The bond has a 2.61% annual pay coupon. Inflation turns out to be 3.52%, 2.22%, and 2.36% over the next 3 years. What is the total annual coupon income you will receive in year 3?