1. 7 years ago Eastern Corporation issued 20-year bonds that had a $1,100 face value, paid interest annually, and had a coupon rate of 7 percent. If the market rate of interest is 5.5 percent today, what is the current market price of an Eastern Corporation bond?
2. Electro, inc has four year bonds outstanding that pay a coupon rate of 7.0 percent and make coupon payments semiannually. If these bonds are currently selling at $911.89 what is the yield to maturity that an investor can expect to earn in these bonds ?