1) Suppose the dealer provides these spot rate quotes: S($|) 1.8505 05 & S($|) 1.5250 15. a) Jack has 5,000 and wants to receive . How much , to 2 decimal places, will he get if he transacts with this dealer?

b) Jill purchases a 10-year zero-coupon Bulldog bond with the par of 1 Million. The bond YTM is 4%. At the purchasing date, he converts the USD to using the dealers quote. At maturity, he converts at an exchange rate of $1= 0.5475. Calculate his annual return for this investment, round to 4 decimal places.