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1- Cyberdyne Systems is issuing a series of zero coupon bonds to raise $500M to fund research and development at its Skynet division. Each bond will have a face value of $ 1,000 and will mature in13 years. The yield on the bond is 6%. What is the fair price for one of Cyberdyne's zero coupon bonds?

2- A 11 year bond pays interest of $27.60 semiannually, has a face value of $1,000 and is selling for $792.28. What are its annual coupon rate and yield to maturity?

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