1. Assume 30-year maturity that interest is 4.00% for the market rate of interest and a mortgage balance of $230,000.00. What will the balance of the mortgage be after 18.00 years?

a. $762,104.54\ b. $1,098.06 \ c. $2,497,766.61 \ d. $125,416.29

2. You are eyeing an investment in a corporate bond which has a YTM of 5.00%, and a stated rate of interest of 9.00% with a maturity of 2 years. What is the price of this bond?

a. $1,074.38 \ b. $1,075.24\ c. $1,244.53 \ d. $990.70