A $$1,000-$face$-$value bond has a current market price of $$935,$ an $8$ percent coupon rate,

and $10$ years remaining until maturity. Interest payments are made semiannually. Before

you do any calculations, decide whether the yield to maturity is above or below the coupon

rate. Why?

a$.$ What is the implied market$-$determined semiannual discount rate $($i$.$e$.,$ semiannual

yield to maturity$)$ on this bond?

b$.$ Using your answer to Part $($a$),$ what is the bonds $($i$)($nominal annual$)$ yield to matur$-$

ity? $($ii$)($effective annual$)$ yield to maturity?