1. A coupon bond that pays semiannual interest is reported in theWall Street Journalas having an ask price of 121% of its $1,000 par value. If the last interest payment was made 3 months ago and the coupon rate is 6.40%, the invoice price of the bond will be

$1,210.00

$1,242.00

$1,226.00

$1,178.00

2. 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 an $84.52 discount from par value. The yield to maturity on this bond is

6%

7.23%

8.12%

9.45%