1. The market price of a two-year bond is 105% of its nominal value. The annual coupon to be paid in exactly one year is 7%. Its yield-to-maturity (European method) is 4.336%.

1. (a)Calculate its simple yield
2. (b)Verify that its yield to maturity is 4.336% (European method)
3. (c)Calculate its yield to maturity (U.S. method).