Question #$1$

A perpetuity pays $$20,000$ a year beginning one year from now. The discount rate is $8\%$ per year. What is the present value of perpetuity?

Question #$2$

A company has a $7\%$ coupon bond that matures in $15$ years. The bond pays interest semiannual. The bond has a face value of $$1000,$ and the yield to maturity is $9\%$ What is the value of the bond?