Q1. Assume you were just offered a $1,000,000 mortgage at a quoted rate of 2.75% and the mortgage calls for equal weekly payments based on a 20-year amortization period. If you were asked to find the amount of your payments using the annuity present value formula, what discount rate would you use in the formula?

Q2. A bond with 25 years to maturity currently sells for $808.25. The risk-free rate is 2%. If the bond pays a 4.5% coupon annually, what is its YTM? Hint: The correct answer rounds to either .00 or .50.