1. What is the yield to maturity of the following bond with these characteristics: 5% coupon interest, 20 years to maturity, $1,000 par value, currently traded at $980, and with semi-annual coupon payments. Show what PV, N, PMT, and FV would be on the financial calculator.

2. Marie and Walt want to accumulate $500,000 by the end of 5 years. They can set aside $25,000 at the beginning of each year for 5 years. Their account will earn 10% compounding quarterly. How much additional money must they put into the account as a single sum today in order to reach their goal? Show what PV, N, PMT, and FV would be on the financial calculator.

3. You just won the California lottery. You have the choice of $198,000,000 today or a 30-year annuity of $13,900,000, with the annual payments starting today. What rate of return is built into the annuity? Disregard taxes. Show work please.