a)

A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 124% of its $1,000 par value. If the last interest payment was made 3 months ago and the coupon rate is 6.70%, the invoice price of the bond will be

b) Assuming semiannual compounding, a 10-year zero coupon bond with a par value of $1,000 and a required return of 11.2% would be priced at _________.