Fleming Enterprises has outstanding a 6.57% coupon bond with a remaining maturity of 14 years. The face value of the bond is $1,000 and coupons are paid semiannually. What is the value (price) of this bond if your required rate of return (the annualized nominal yield to maturity) is 9.61%?

Keller Corp. has an outstanding issue of $1,000 par value bonds with a 6.61% coupon rate, paid semiannually. The issue matures in 17 years. Bonds of similar risk are currently earning a 8.46% rate of return (annualized nominal yield). Consider why a bond might be earning a yield below the coupon rate. What might have happened?