1. A firm has 6% coupon bonds outstanding with a current market price of $777. The yield to maturity is 10% and the par value is $1,000. How many years is it until these bonds mature?
a) 33.02 years
b) 7.86 years
c) 8.36 years
d) 3.93 years
2. You buy a 3 year, zero coupon bond with a 7.45% yield to maturity and par value is $1,000. What is the current market price?
a) $803.36
b) $806.08
c) $1,245.38
d) $802.97