1. The City of State College plans to issue bonds with a par value of $2,000 that will issue 5% quarterly payments for 5 years. If a purchaser wants earn 4% per quarter over the lifetime of the bond, how much would the purchaser be willing to pay for the bond? 2. A young engineering company is a subcontractor in an effort to develop technology that will reliably detect and respond to release of a nuclear weapon. The company is in need of additional funding and issues a series of $1,000 face value bonds that pay a nominal annual rate of 6% with quarterly payments. The bond matures in 5 years. a. If you buy one bond for $900, but need to sell it immediately after the 12th interest payment for $900, what is your effective annual rate of return?|