a. Consider a coupon bond that pays interest of $60 annually, has a par value of $1,000, matures in 2 years, and is selling today at a price of $1000. What is the yield to maturity on this bond?

b. Consider a zero-coupon bond with a par value of $1,000 that costs $500 and matures in ten years. What is the yield to maturity on this bond? Give the formula, and solve.

c. For the bond in part (b) above, what will be the price one year from today, if interest rates stay the same?