1. Calculate the current price of a $5,000 par value bond that has a coupon rate of 20 percent, pays coupon interest quarterly (i.e., 4 times per year), has 21 years remaining to maturity, and has a current yield to maturity (discount rate) of 8 percent. (Round your answer to 2 decimal places and record without dollar sign or commas).
2. Is trade deficit more worrisome when not accompanied by a corresponding increase in investment? Explain