1. Your grandmother invested one lump sum 17 years ago at 4.25% interest. Today, she gave you the proceeds of that investment which totaled %5539.92. How much did your grandmother originally invest?
A. $2700.00
B. $22730.30
C. $2750.00
D. $2768.40
2. An investor buys a 5% annual payment bond with three years to maturity. The bond has a yield-to-maturity of 4% and is currently priced at $103 per 100 of par. What is the bond’s Macaulay duration?