SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 4.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2014. What is the yield to maturity for an SWH Corporation bond on January 1, 2008 if the market price of the bond on that date is $930?

		5.90%
		6.50%
		2.95%
		5.40%

b/

Martha has estimated that she would need $35,000 per year (in today's $ terms) to live on in retirement. She will be retiring in 30 years and is funding for a 23-years retirement period. The inflation rate is expected to be 2% per year and the after-tax return on her investments is expected to be 5.5%. Calculate the annual amount she would need at the beginning of her retirement.

		$63,398
		$55,191
		$1,419,883
		$96,264