1. What is the price of a bond maturing in 100 years that has a face value of $1,000; pays a semi-annual coupon of $25 and pays the face value amount at maturity? The market interest rate is 5%.
2. You recently bought a default free bond that makes exactly three payments over the next three years. The current market value of the bond is $3,258.27 and the security pays $700 in one year, $1,100 in two years. The security has a yield to maturity of 8%. What is the amount of the payment that you are supposed to receive at the end of three years?