To help pay for$$ university, you have just taken out a

$$$$1000$

government loan that makes you pay

$$$$135$

per year for

$25$

years.$$ However, you$$ don't have to start making these payments until you graduate from university

two

years from now. Why is the

yield to maturity

necessarily less than

$13\%?$

$($This is the yield to maturity on a normal

$$$$1000$

fixed$-$payment loan

on which you pay

$$$$135$

per year for

$25$

$$years$.)$

If your loan

$($$$135$

per year for

$25$

years starting

twotwo

years from$$ now$)$ had the same yield to maturity as a normal$$ fixed$-$payment loan with payments of

$$$$135$

per year for

$25$

$$years$,$ then the present value of each

$$$$135$

payment on your loan would be