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1) The bonds issued by M $ Son Corp

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1) The bonds issued by M $ Son Corp. bear a coupon of 6 percent, payable semiannually. The bond matures in 15 years and has a $1,000 face value. Currently, the bond sells at par. What is the yield to maturity? Is this a premium or discount bond and why?

2) A 12-year, 5 percent coupon bond pays interest semi-annually. The bond has a face value of $1,000. What is the percentage change in the price of this bond if the market yield rises to 6 percent from the current level of 5.5 percent? Briefly discuss.