Use the following information to answer this question and the next question. The Bozo Company has an 8% coupon bond outstanding. The bond makes semiannual coupon payments and has 12 years remaining to maturity. Its market price is $846.64. It is issuing a new 20-year bond to finance a factory to make new Bozos. The new bond will make annual coupon payments.

What coupon rate should be set for the new bonds of the Bozo Company for these bonds to sell at par?

		9.52%
		10.00%
		10.25%
		10.51%

Use the following information to answer this question and question 7. Bonds of RAR Foods are selling in the market for $854.66. These bonds carry a 9 percent coupon paid semiannually, and have 15 years remaining to maturity.

1. What will be the bonds price if yield to maturity drops to 10%, assuming that all other factors remain the same?

   		$888.88
   		$691.76
   		$858.79
   		$923.14