1. 1 year ago, TSU Farms sold $50,000,000 worth of 8.0% coupon rate, 10-year maturity, $1000 par value, AA-rated; non-callable bonds to finance its business expansion. The coupon payment is made semi-annually. Currently, investors are demanding a yield of 11.0% on similar bonds. If you own one of these bonds and want to sell it, how much money can you expect to receive on it?
2. If Ms Hopeful decides to deposit $7,000 at the end of each year for the next 20 years into an account which pays a rate of interest of 8% per year, by how much will her accumulated nest egg vary if she made each of the 20 deposits at the beginning of the year?