1) Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 20.2% for its portfolio of lending, and the average length on its loans is 6 years. If you were to apply to Blue Angel for a $144,000 loan, what is the annual percentage rate you would have to pay for this loan?

2) Lunar Vacations needs to raise $5,700,000 for its new project (a golf course on the moon). Astro Investment Bank will sell the bond for a commission of 2.4%. The market yield is currently 7.4% on twenty-year semiannual bonds. If Lunar wants to issue a 5.6% semiannual coupon bond, how many bonds will it need to sell to raise the $5,700,000? Assume that all bonds are issued at a par value of $1,000.