2. Your retirement account balance is $1,000,000. Using the balance, your retirement plan begins to give you the same amount of money every month. Given the retirement plan annual return of 12%, how much do you receive every month for the following 10 years?

4. Firm A issued 10-year bonds with a par value of $1,000 two years ago with 10 % coupon rate, paid semiannually. The yield to maturity on these bonds is 8 percent.

a) What is the present value of thecoupons? (15points)

b) What is the bond price? (15points)