A treasury bond that matures in 10 years has a yield of 4.75%. A 10 year corporate bond has a yield of 6.50%. Assume that the liquidity premium on the corporate bond is 0.6%. What is the default risk premium on the corporate bond?

Pandora media plans to issue original issue discount (OID) bonds with a 20 year maturity, a $1,000 par value and an initial yield to maturity of 8%. Since these bonds are issued below par, the total yield will come from both annual coupon payments and appreciation. If the bonds are offered at a discounted price of $960, what is their nominal coupon rate? That is, at this price, what coupon rate will result in a yield to maturity of 8%?