1. Calculate the value of a bond that matures in 14 years and has a $ 1,000 par value. The annual coupon interest rate is 15 percent and the market's required yield to maturity on a comparable-risk bond is 16 percent.
2. The market price is $700 for a 15 -year bond ($1000 par value) that pays 8 percent annual interest, but makes interest payments on a semiannual basis (4 percent semiannually). What is the bond's yield to maturity?