1. Provide an explanation of the difference between proportional and progressive taxes. How are they used? Provide examples of each type.
2. You are considering a 30-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 8.09%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.?