1. You purchase a bond with an invoice price of $1,178. The bond has a coupon rate of 6.25 percent, a face value of $1,000, and there are two months to the next semiannual coupon date. What is the clean price of this bond?
A. $1,157
B. $1,199
C. $1,136
D. $1,168
2. Your great aunt decides to fund your education by taking out a reverse annuity mortgage on her house. What annual payment can she get if she decides on a $300,000 debt at the end of 12 years and the current rate is 9%?