Question: You are considering buying a junk bond that promises $5$ coupon

payments of $$30$ each. The payments are promised to occur every year starting

later today. You decide that for this bond, the effective annual discount rate for

the first three years $($i$.$e$.$ from today to three years from today$)$ is $29\%.$ The

effective annual discount rate after the first three years $($i$.$e$.$ from three years

from today onward$)$ is $39\%.$ Based on these assumptions, what is the present

value of the $5$ coupon payments?

Question: What is the annuity factor if Abbie receives $$7,000$ per year each year

for $30$ years, starting one year from today? Assume the effective annual interest

rate is $12\%.$