1. Mur Corps bonds mature in 8 years, with a par value of $1,000, and an annual coupon rate of 6.5% The market requires an interest rate of 7.2% on these bonds. What is the bond's price?

a) 958.52

b) 925.62

c) 896.79

d) 972.48

e) 848.76

2. Ken Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 5 years at a price of $1,120. What is the bonds nominal yield to call? Which is an investor that buys the bond today more likely to earn?

A) 6.39%

b) 7.54

c) 7.15

d) 7.86

e) 6.13