1. Steaks Galore needs to arrange financing for its expansion program. One bank offers to lend the required $1,000,000 on a loan which requires interest to be paid at the end of each quarter. The quoted raate is 10%, and the principal must be repaid at the end of the year. A second lender offers 9%, daily compounding (365-day year), with interest and principal due at the end of the year. What is the difference in the effective annual rate (EFF%) charged by the two banks?

Correct answer: .96% please show work and calculations

2. Keenan industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,120. What is the bonds nominal yield to call?

Answer: 6.53% Please show work