a)) You buy an 6-year $1,000 par value bond today that has a 5.00% yield and a 5.00% annual payment coupon. In 1 year promised yields have risen to 6.00%. Your 1-year holding-period return was ___.

b)) You buy a bond with a $1,000 par value today for a price of $920. The bond has 6 years to maturity and makes annual coupon payments of $84 per year. You hold the bond to maturity, but you do not reinvest any of your coupons. What was your effective EAR over the holding period?