Question 2: Krypton Inc. wants to raise $3 million by issuing 10-year zero coupon bonds with a face value of $1,000. Their investment banker informs them that investors would use a 9.25% percent discount rate on such bonds. At what price would these bonds sell in the market place assuming semi-annual compounding? How many bonds would the firm have to issue to raise $3 million? Question 1: The First Federal Bank has advertised one of its loan offerings as follows: "We will lend you $100,000 for up to 5 years at an APR of 9.5% (interest compounded monthly.)" If you borrow $100,000 for 1 year and pay it off in one lump sum at the end of the year, how much interest will you have paid and what is the bank's APY? Question 2: If First Federal offers to structure the 9.5%,$100,000,1 year loan on a monthly payment basis, calculate your monthly payment and the amount of interest paid at the end of the year. What is your EAR