1. A bond matures in 10 years. The bond has a 10 percent annual coupon and a par value of $1,000. The bond is callable in 5 years at a call price of $1,050. The price of the bond today is $1,100. What is the bond’s yield to call (YTC)?
13.19%
12.49%
12.75%
10.30%
8.32%
2. Mr. Jackson plans on saving $5,000 at the end of each year and expects to earn a nominal interest rate of 6.75% per year. How much will Mr. Jackson have at the end of 25 years if he earns what he expects?
$263,121.56
$336,121.56
$358,121.56
$291,121.56
$305,121.56