a) Mr. Smith buys a $1,000 bond in the secondary market which carries a semi annual coupon of 10% . The bond has 9 years until maturity . If the yield -to -maturity in today's market is 9% , what price should Mr. Smith pay for the bond ? b) A corporation issues a special 20-year bond that has no coupons . Rather , interest will be accumulated on the bond at a rate of 11 % per year (EAR ) for the life of the bond . At the time of maturity , the total value of the bond will be paid off , including all accumulated interest . What is the current price of the bond if the yield is 10 %?