For bonds, assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted (Ignore it if it's not relevant to the question).

1. What is price of $100 par, 8 year bond paying a 7% coupon and bought at a 5% yield?

2. What is the overall yield to a lender who loans $8000 for 10 years at 4% and reinvests the annual amortizing payments at 5%?