The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31, 2008. Coupon payments...

The Pennington Corporation issued a new series of bonds on January 1, 1979.  The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31, 2008.  Coupon payments are made semi-annually (on June 30 and December 31).

1. What was the YTM of Pennington’s bonds on January 1, 1979?

1. What was the price of the bond on January 1, 1984, 5 years later, if the level of interest rates had fallen to 10 percent? c. On July 1, 2002, Pennington’s bonds sold for $916.42. What was the YTM at that date?