1. You are planning for retirement and will invest $300,000 per year at the end of year at an expected return of 5% annually for the next 40 years. How much will you get 40 years later?

Group of answer choices

36,239,932.27

23,233,874.12

38,999,147.14

41,321,458.78

19,451,119.59

2. Five years ago, John bought the annual-coupon bond of XYZ when it was first issued. The coupon rate is 8%. Five years ago, the yield-to-maturity of XYZ was 8%. When it was issued, the years to maturity of the bond was 15 years. John has already held it for five years as of today and he is selling XYZ bond today. He reinvested the coupon at the rate of 12% per year over the past five years. The current yield-to-maturity is 12%. Par value is $1,000. What is the geometric rate of return of the investment?

Group of answer choices

5.10%

5.55%

5.77%

6.03%

6.77%