1. Seinfeld Co. issued a 20 year, 7% coupon, convertible bond. The annual yield is 9% and the bond is convertible to 25 shares of Seinfeld common stock which currently sells for $45.A. What is the price of the bond? B. If the bond is also callable in one month at par (face) what should bondholders do?

2. You participate in a 401K and invest $4,000 per year, which is matched by your employer. If you earn 11% annually, how much will be accumulated after 40 years?

b. calculate the above assuming an annuity due.