1. You have a 15 year bond paying 4% coupon payments annually. the par value is $1000, the YTM when issued was 9%. What is the selling price of the bond after 5 years, given that the YTM has changed to 8%?
2. Sania is a sole proprietor and wishes to use the simplified method for business use of home expenses. Her mortgage interest for 2016 is $4500, and real estate taxes are $955. Her home office is 500 square feet, and her total home square footage is 1,900 square feet. What is the home office expense deduction?