1. Abner Corporation's bonds mature in 25 years and pay 11 percent interest annually. If you purchase the bonds for $1275, what is your yield to maturity? Your yield to maturity on the Abner bonds is --------%. (Round to two decimal places.)
2. Doisneau 17 year bonds have an annual coupon interest of 8 percent, make interest payments on a semiannual basis, and have a $1000 par value. If the bonds are trading with a market's required yield to maturity of 18 percent, are these premium or discount bonds?

Explain your answer. What is the price of the bonds?