1. You expect to invest $1,000 every six months for next 3 years, totaling six payments. First payment will be made six months from today. The account will pay an interest rate 16 percent compounded annually. What is the future value of these payments, that is, how much money will you have in the account at the end of the third year? Choose the closest answer.
2. Consider a corporate bond.. The face value of the bond is $11,000.. The bond pays coupon annually.. The coupon rate on the bond is 8%%.. The yield to maturity for the bond is 6%%.. The bond just paid a coupon payment and has exactly two years until maturity.. What is the price of the bond ?