1. Last week you learned that financial engineering and conflicts of interest have both increased the bank's risk profile. How have rules and regulations reduced conflicts of interest and the risk profile of the bank?
2. Best Motors has hired Robert Trent as its new president. Terms included the company’s agreeing to pay retirement benefits of $17,900 at the end of each semiannual period for 12 years. This will begin in 4,015 days. If the money can be invested at 8% compounded semiannually, what must the company deposit today to fulfill its obligation to Robert?