1. The Country Inn has bonds outstanding with a par value of $1,00 each and a 6f percent cupon The bond s mature in 7.5 years and pay interest semiannually. What is the current value of each of these bonds if the yield to maturity is 6.8 percent?
2. Suppose you have a 11.75%, 20 year bond traded at $875.60. If it is callable in 5 years at $1,100, what is the bond's yield to call? Interest is paid semiannually.