Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 16 percent? Assume annual payments.

$1315
$1300
$756
$1000

Which one of the following will increase the future value of a lump sum invested today?

decreasing the amount of the lump sum
increasing the rate of interest
paying simple interest rather than compound interest
paying interest only at the end of the investment period
shortening the investment time period

Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently sell for $850. The annual coupon payments are $80. If the bonds have 10 years until maturity, what is the approximate YTM of the bonds?

10.50%
11.50%
11.75%
12%