1. You buy a zero coupon Bond at the beginning of the year that has a face value of $1000, a YTM of 6.3 percent, and 25 years to maturity. If you hold the Bond for the entire year, how much in interest income will you have to declare on your tax return? Assume semiannual compounding.
2. Suppose a? five-year, $1,000 bond with annual coupons has a price of $899.91 and a yield to maturity of 6.1%. What is the? bond's coupon? rate?
The? bond's coupon rate is %.