Sally is planning to deposit a lump sum today to help with her education which will begin 18 years from now. Sally is hoping that she will give her $500 a month at the end of each month for 4 years starting the month after she starts college. If the average annual interest rate is 8% compounded monthly, how much should she put in the account?

• $2,925.45
• $3,413.03
• $3,435.78
• $2,925.45
• None of the above

Williams, Inc. is selling bonds for $775.37. Each bond has an 8% coupon rate and makes payments semi-annually. The bond matures in 25 years. What is the bonds yield-to-maturity?

• 11.74%
• 8.00%
• 5.29%
• 10.57%
• None of the above