1. Assume a par value of $1,000. Caspian Sea plans to issue a 17.00 year, annual pay bond that has a coupon rate of 7.81%. If the yield to maturity for the bond is 8.35%, what will the price of the bond be?

2. What is the value today of a money machine that will pay $4,977.00 per year for 20.00 years? Assume the first payment is made 10.00 years from today and the interest rate is 12.00%.