1. The corporate bond matures in 20 years an is callable in 10, its current market value is $1035. ITs coupon rate is 5% paid annually. What is the yield-to-call. The call premium is $25.

2. What is the theoretical value of an investment that promises to pay you $75 at the end of every year for eight eras. Plus $4,000 at the end of the eight year. Your required rate of return is 6%.