A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and is selling today at $883.31. What is the yield to maturity for this bond?

a. 6%.

b. 7%.

c. 8%.

d. 9%.

Peter buys ten zero-coupon bonds with a maturity of 30 years for a total of $4,119.87. Assume he buys the bonds on June 30th. How much interest will he have to report for tax purposes for the first year? Assume annual compounding for simplicity.

a. $0 because it is a zero-coupon bond.

b. $61.80.

c. $123.60.

d. $300.00.