1. A corporate bond has four years remaining to maturity, has a 10 percent yield to maturity, and is priced at $89.20 per $100 of par value.

1. If the bond has annual payments, what is the bonds coupon rate?

2. If the bond has semi-annual payments, what is the bonds coupon rate?

3. A rich uncle is giving Joe, as a gift, one of the two bonds: (i) bond with annual payments or (ii) bond with semi-annual payments. Which bond should Joe select or are both bonds worth the same amount? Explain your answer.