1. You are being offered a 6% annual pay coupon bond with a $1,000 par with 20 years remaining to maturity in a 7% interest rate environment for 20 year comparable bonds. What do you think the price will be? Please pick the number closest to your answer.

A) $895

B) $915

C) $925

D) $940

2. You are considering buying a $1,000 par bond with 25 years to maturity and a 5% coupon for $850.What is the yield-to-maturity of this bond investment?Pick the number closest to your answer.

A) 5.8%

B) 6.0%

C) 6.2%

D) 6.4%