A firm has a bond issue with a coupon rate of 6.75% that matures in 12 years. The bonds have a par value of $1,000 and a current price of $935. What is the yield to maturity?
a) 3.69%
b) 7.58%
c) 5.93%
d) 14.67%
A firm has bonds with 17 years remaining to maturity, a par value of $1,000, and selling for $1,275.50. At this price, the bonds yield to maturity is 5.83%. What is the annual coupon rate?
a) 7.71%
b) 3.85%
c) 10.50%
d) 8.41%