1. The bonds issued by Tulip Incorporated bear a 7.0 percent coupon, payable semiannually. The bonds mature in 10 years and have a $1,000 face value. Currently, the bonds sell for $989. The yield to maturity IS 7.16%. Show your work on how to arrive at this number.
2. Lambert Equipment offers 7.5 percent coupon bonds with semiannual payments and a yield to maturity of 7.68 percent. The bonds mature in 6 years. The market price per bond (if the face value is $1,000) is $991.47. Show how this answer was arrived at: