1. Suppose the 1-, 2-, and 3-year spot rates are 2.25%, 2.50%, and 3.00%. What is the yield to maturity of a 3-year annual coupon bond with 4.0% coupon rate and a face value of $1,000?

2. A retiree needs $50,000 a year in income for the first 20 years of their retirement. The retiree can earn a rate of return on their invested funds of 8% over that time. How much money does the retiree need at retirement to ensure their income needs?