1. Essary Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $986. At this price, the bonds yield 7.8 percent.
What must the coupon rate be on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
2. A Japanese company has a bond outstanding that sells for 91 percent of its ¥100,000 par value. The bond has a coupon rate of 5 percent paid annually and matures in 12 years.
What is the yield to maturity of this bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)