1. If Bob and Judy combine their savings of $1,800 and $600, respecively, and deposit this amount into an account that pays 8% annual interest, compounded monthly, what will the account balance be after 4 years?
2. Which of the following events would best describe the reason for a bond to receive a credit rating upgrade:
A. The Federal Reserve lowered interest rates (parallel)
B. The bond’s duration changed from 4 to 5
C. The bond’s credit spread decreased
D. The bond’s credit spread increased