a) 1. A 7% $1000 bond matures in 18 years and is selling at par. Find the yield to maturity (YTM) of the bond. 2. If the bond was selling at $900, should the YTM of the bond be more than or less than 7%? b) ABC Inc bonds have a 7% coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 12 years from now. The bond yields 10%. 1. What is the coupon payment received by the investor on a semiannual basis? 2. How much is the investor willing to pay for the bond? 3. Is this a premium or a discount bond and why?