1. Fitzgerald's 15-year bonds pay 9 percent interest annually on a $1,000 par value.
   1. If the bonds sell at $825, what is the bond's yield to maturity?
   2. What would be the yield to maturity if the bonds paid interest semiannually? Explain the difference.

2. Doisneau 23-year bonds have an annual coupon interest of 13 percent, make interest payments on a semiannual basis, and have a $1,000 par value.

A.) If the bonds are trading with a market's required yield to maturity of 11 percent, are these premium or discount bonds? Explain your answer.

B.) What is the price of the bonds?